Corporate Responsibility Report 2015 2 Corporate Responsibility at Aker Asa 2015

CORPORATE RESPONSIBILITY REPORT 2015 2 CORPORATE RESPONSIBILITY AT AKER ASA 2015

CONTENT

1. CORPORATE RESPONSIBILITY AT AKER 3 Our responsibility as an owner 5

2. SOCIETY 6 Creating value for society Focus on: Retaining core skills 7 Knowledge without borders 8

3. PEOPLE 9 People create Aker Focus on: From EWC to GWC 11

4. ENVIRONMENT 12 Aker takes responsibility for the environment Focus on: Reducing climate emissions 14 Sustainable fishing 15

5. INTEGRITY 16 Zero tolerance for corruption Focus on: Increasing awareness and care 17

6. Transparency and openness 18

7. Aker’s ambitions and expectations going forward 19 CORPORATE RESPONSIBILITY AT AKER ASA 2015 3

CORPORATE RESPONSIBILITY

Aker ASA (Aker) exercises active ownership with a view to creating value. Aker’s most important contribution to society is to create value by continuing to develop forward-looking companies that supply products and services in a socially responsible, ethical and sustainable manner.

Aker is, directly or indirectly, the ma- about skilled blue and white-collar wor- history during the past 25 years. Their jority stakeholder in eight companies kers and engineers working together report illustrates the key role Aker has listed on the Oslo Stock Exchange. Alt- and engaging with authorities, schools played for Norwegian industrial de- hough the majority of the directors on and universities, local communities and velopment, in particular in oil and gas the boards of each of the listed compa- partners. Since its inception, Aker has and the fishing sector. Aker’s DNA is nies have no ties to Aker, Aker exerts been a pioneer in seeking expertise described as consisting of three main great influence on the companies’ stra- across national boundaries, businesses traits: adaptability, knowledge, and the tegy and priorities by virtue of being and professions. cooperation between the company’s the owner. management/owners, its employee re- In the first half of 2015 five masters’ presentatives and society at large. In 2016 Aker will celebrate its 175th an- students (studying organisational ma- niversary. Knowledge that knows no nagement and administration) from the boundaries runs through the compa- University of Oslo conducted a study ny’s history like a red thread. Aker is on the events that have shaped Aker’s 4 CORPORATE RESPONSIBILITY AT AKER ASA 2015

GUIDELINES AND PRINCIPLES relevant themes and specific challen- es, the CR Forum. This is a forum where Aker’s corporate culture is based on ges will vary from company to compa- participants can discuss relevant issues good business practices, openness, ho- ny, depending on its sector: oil and gas, and exchange insight and experiences nesty and respect for other people. The- maritime activities, seafood and marine to promote learning and improve the se principles form the basis for sound biotechnology. companies’ work. The network is cur- equity investments in Aker’s portfolio rently made up of about 20 individuals. companies. As an industrial investment OBJECTIVES AND HOW THEY ARE company Aker has governing docu- PURSUED AKER’S FOUR PRIORITY AREAS ments for sound corporate governance, Aker primarily exercises its ownership Over the past ten years Aker has defi- risk management and internal control, in the companies’ boardrooms. Aker’s ned four priority areas as being most ethical guidelines, communication and Board of Directors and the portfolio important to the company’s CR efforts: principles for corporate responsibility. companies’ Boards set the expectations people, the environment, integrity and The governing documents have been for and define CR objectives, and moni- society. These priorities are based on the adopted by the company’s Board of Di- tor the pursuance of responsible, sustai- United Nations’ Global Compact. rectors to secure and develop Aker’s role nable and ethical business activities. as a responsible owner. Regulatory compliance is a minimum re- The company’s primary stakeholders are quirement, and a line and management its shareholders and bond holders, inves- Aker’s guidelines are based on its Code responsibility in both Aker and the port- tors, analysts, Aker and portfolio compa- of Conduct. The document sets out et- folio companies. Each company’s Board ny employees, and the authorities. The hical guidelines for employees and part- of Directors is responsible for regularly CR report focuses on Aker’s role as an ners, and principles relating to workers’ assessing and evaluating results, as well owner, emphasising values, expectations rights, human rights, anti-corruption, so- as the social consequences and impact and priorities and the results that have cial conditions and the environment. In on society at large of its operations. been achieved. 2015, the company updated these principles so that they stipulate more clearly Aker’s investment team is responsible Due to staff reductions in the portfolio Aker’s expectations of the Codes of Con- for the continuous follow-up of the port- companies working in the oil sector, the ducts of its portfolio companies. folio companies. The legal department most challenging and important area in supports this work and handles comp- 2015 has been Society, an area closely Aker’s CR principles are outlined in the liance issues, in collaboration with the linked to Aker’s priority area People. In Compass. This is a governance tool for finance and accounting department’s the area Environment Aker seeks to en- how Aker exercises ownership and navi- Controller and risk management functi- courage its portfolio companies to work gates challenging waters. The Compass on. Compliance is the day-to-day work for greater resource efficiency and lower sets out Aker’s ambitions and governs to ensure that the company’s actions are climate emissions. In terms of Integrity, the company’s expectations of its staff in line with its internal guidelines and Aker has introduced an anti-corruption and of that of its portfolio companies. In principles, and regulatory obligations. policy for its own employees and those its capacity as owner Aker will lead by Risk management is about predicting of its portfolio companies. example through its values, actions and and analysing the risks the company fa- the exercise of its ownership. ces, and how to avoid or handle undesi- Aker’s 2015 CR report addresses each red incidents. of these areas. The industrial portfolio Each industrial portfolio company’s Bo- companies in which Aker has ownership ard of Directors adopts its own gover- Aker has set up a network consisting of interests all publish their own CR reports. ning documents adapted to the specific key personnel working with corporate business of the company. Stakeholders, responsibility in its portfolio compani- CORPORATE RESPONSIBILITY AT AKER ASA 2015 5

Our responsibility as an owner

The CR report has been prepared in To date, Aker has not specified environ- accordance with section 3-3c of the mental goals for the areas in which the Accounting Act, which requires lar- company has operations. Fish and krill ge undertakings to report annually on are renewable resources. In response to their CR work. The report provides an an Aker initiative, the fishing compani- account of Aker’s role as shareholder es Havfisk, which catches whitefish in in operational companies, and includes the Barents Sea and Aker BioMarine, a guidelines, describes how Aker works harvester of krill in the Antarctic Sea, with CR and what CR results have been have for years worked together with achieved, as well as Aker’s CR ambiti- WWF Norway on sustainably harve- ons, expectations and priorities going sting maritime resources. In the oil and forward. gas industry Aker is a driving force for the development of knowledge-based Aker is an investment company with in- products and technologies as a way dustrial investments focused principal- of tackling environmental and climate ly on the oil and gas sector, maritime problems. Aker believes that the UN’s 17 assets and seafood/marine biotechn- sustainability goals are key to safeguar- ology. These businesses build on Nor- ding the needs of people living today way’s natural resources, in particular without destroying future generations’ those of the sea and below the seabed. opportunity to meet their needs Aker adopts a careful approach, which takes into account questions of vulnera- bility and risks. 6 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | Society

HOW AKER RELATES TO SOCIETY THROUGH ITS ACTIVITIES: SOCIETY As an industrial investment company, Aker’s goal is to achieve long-term value creation through responsible, forward-looking and profitable work places in its portfolio companies.

Creating value for society

Aker invests capital and knowledge in forward-looking companies that will, by exercising corporate responsibility in their operations, deliver satisfactory financial results in the long term.

The company promotes value creation of Aker’s and its portfolio companies’ the Seafood Industry Committee’s (the for its shareholders, staff, customers and good and collaborative relations with Tveterås Committee’s) report. This was the society of which Aker and its portfo- the employee organisations. a joint statement from Aker’s CEO and lio companies form a part. By exercising the group union representative and the active ownership Aker takes responsibi- Group union representative Atle Tranøy CEOs of both Havfisk and Norway Se- lity for how these values are created. at Aker comments on the process as afoods stressing that fishing activities follows: must be sustainable – both in economic, Taken together, Aker’s portfolio compa- societal and environmental terms. nies are Norway’s largest private indus- “In these processes, the trade union re- trial employer, primarily within the oil presentatives and portfolio company On 13 November 2015 the Norwegian industry and whitefish industry. These management usually seek to reach a government presented the White Paper are cyclical industries that are subject to common understanding of the situation. “A competitive seafood industry,” con- fluctuations in prices and activity levels. We can have diverging opinions on how taining a number of proposals, including The operational companies adjust their the company should handle the situat- changes in the first-hand purchase of capacity in accordance with the changes ion. Disagreements on workforce redu- fish, the obligations relating to delivery, in the market. Aker expects all its port- ctions may relate to the size of the cuts processing and activity, and rules for folio companies to engage in an open and the criteria to be applied in selecting production on board. Taken together, dialogue with all its partners and parties candidates, i.e. whether to give weight these measures are intended to increase that are affected by these changes. Each to seniority, skills or social factors. The flexibility in the industry and simplify the company carries responsibility for con- companies tend to stress skills while rules governing it. In the process going tinuing to develop relations to its stake- employee representatives usually base forward Aker will work for resilient value holders and local communities. themselves on seniority, with authority chains that form the basis for profitable in existing legislation and agreements. work places, both at sea and onshore. Overall, the number of staff and tem- In Aker’s collaborative tradition it is porary hired personnel in the portfo- considered a goal in itself to come to AKER’S EXPECTATIONS OF ITS PORT- lio companies fell from approximately an agreement through dialogue and ne- FOLIO COMPANIES 29 000 to 26 000 in 2015. gotiations in the companies themselves, Willingness and ability to adapt are de- without resorting to national tariff parti- cisive for forward-looking companies. While some portfolio companies have in- es or the courts.” Successful change and adaptation to the creased their staffing levels, others have market is contingent on good cooperati- had to downsize. Oil-related companies THE LARGEST WHITEFISH HARVE- on with union representatives and their have adjusted their workforce by about STING HOLDING organisations. Going forward Aker will 3500 employees in total, of which half As owner of Havfisk and Norway Se- continue to exercise its ownership of the were in Norway. afoods Aker is the largest player in portfolio companies as a driving force whitefish harvesting and processing in for involving and including union repre- The reports Aker has received indicate Norway, and the company’s ambition sentatives in processes that are likely to that the staff reductions have been de- is to be a long-term and socially re- impact significantly on businesses and manding, but that one is seeking to responsible industry player. In 2015 Aker local communities. solve these issues within the framework submitted a consultative statement to PRIORITY AREAS | Society CORPORATE RESPONSIBILITY AT AKER ASA 2015 7

FOCUS ON: Retaining core skills

The fall in oil prices swiftly resulted in laid the basis for the Norwegian welfare uncertain, affecting Aker Solutions per- cuts in both operating and maintenan- society and a knowledge-based oil in- sonnel in the subsea field. Akastor’s ce budgets and investments on the dustry. Oil prices fluctuate and Aker has fully-owned subsidiary MHWirth has Norwegian continental shelf. There is a many years of experience with chan- seen the newbuild rig market grind to danger that the capacity adjustments in ging investment and activity levels in a halt. As a result several companies the oil service industry will result in core this highly cyclical industry. in the portfolio companies have had to skills being lost. make adjustments, impacting negati- On this occasion the decline began in vely on individual employees, families, The Norwegian oil industry has been early 2014, months before the oil price sub-suppliers and local communities. hard hit and the oil companies are re- fell from more than USD 100 per bar- ducing maintenance and operating rel. In 2015 the impact on the supply With the volatile oil price, planning costs, investments and personnel. The industry is evident and the activity on for the future requires predictable rule of thumb in the supply industry is the Norwegian shelf is in decline. In this framework conditions from the go- that each workplace requires an annu- environment, the challenge is to retain vernment. While the ongoing Johan al turnover of NOK 2 million, which in the core skills and capacity required for Sverdrup development is set to be the turn also ensures the employment of the next upswing. largest industrial project in Norway two sub-supplier workers and others. during the next few years and will have Given that the activity levels fell by ap- Aker is a long-term owner in companies positive spin-off effects for society at proximately NOK 40 billion from 2014 such as Aker Solutions, Akastor, Kvaer- large, this project alone cannot sustain to 2016, there are 20 000 fewer jobs in ner and Det norske. These companies the Norwegian oil service industry. the supply industry, which impacts an have all been affected in different ways additional 40 000 jobs. by the drop in oil prices. The market for Aker is firm in its belief in the long-term Modifications, Maintenance and Opera- resilience of the Norwegian oil service Ever since the Norwegian oil industry tions (the MMO market) especially has industry and of the Norwegian conti- first came into existence 50 years ago, declined considerably as a result of the nental shelf and is therefore focused on Aker has been a key player in this in- oil companies’ short-term priorities. ensuring that the portfolio companies dustry. The oil boom has created enor- The market for subsea developments retain and continue to develop exper- mous values for Norwegian society and and installations has changed and is tise.

Photo: Kværner Verdal is an important company in the local society. The shipyard has won significant contracts for fabrication and delivery of large jacket structures for Johan Sverdrup. 8 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | Society

Knowledge without borders

Over the course of its 175-year history, Aker has driven the development of knowledge-based industry in Norway, and spreading it internationally.

It all started as a smithy on the Akersel- as to support masters’ and doctoral the Røkke family and owner of 68 per va river in Oslo in 1841. The founder was students at leading universities abroad. cent of the shares in Aker ASA. Scho- a naval officer by the name of Peter S. This scholarship offers Norwegian ta- larships are granted to individuals with Steenstrup who had trained in England. lents the opportunity to be exposed to the right abilities, social engagement In the early years the company served new impulses, build networks and learn and personal potential. The candidates’ local businesses, supplying them with from the world’s best universities. academic qualifications are assessed mechanical tools. The ambition was one by an academic committee, consisting day to build steam boats to transport The goal is to inspire scholarship win- of leading Norwegian academics with people and goods, and in 1856 Aker ners to make a difference and do their specialist expertise in engineering, na- delivered the first Norwegian-built ste- bit for the development of Norwegian tural sciences, medicine, social sciences amer. industry and society, thus benefitting and economics. The foundation’s Board future generations. The idea is to give of Directors makes the final decision on For generations, Aker has been a sy- the right people the right opportuni- who the scholarships are awarded to. nonym for innovation and industrial ties to learn from the world’s leading The Aker Scholarship programme is run development. Since 2009 Aker has experts – regardless of their financial by Aker. been an industrial investment company, situation or family background. There exercising active ownership in leading are no limitations on the fields of study Aker Scholarship offers funding for companies in oil, fishing and maritime eligible for support. masters’ and doctoral studies at Har- activities. vard, MIT, Stanford, Caltech, University Aker Scholarships are awarded by the of Pennsylvania, Oxford, Cambridge, Aker continues to pursue its vision of foundation “Anne Grete Eidsvig og Kjell Imperial College and the National Uni- being active in the development of Inge Røkkes allmennyttige stiftelse for versity of Singapore. The first Aker knowledge-based industry and society. utdanning,” which translates as Anne scholars are due to start their studies in In the autumn of 2015 the company’s Grete Eidsvig and Kjell Inge Røkke’s September 2016. principal owners, Anne Grete Eidsvig philanthropic educational foundation. and Kjell Inge Røkke, established the The foundation is funded with donati- www.akerscholarship.no Aker Scholarship jointly with Aker so ons from TRG AS, a company owned by PRIORITY AREAS | People CORPORATE RESPONSIBILITY AT AKER ASA 2015 9

HOW AKER RELATES TO PEOPLE, HUMAN RIGHTS AND WORKERS’ RIGHTS: Aker initiates measures to promote employee participation in its portfolio companies. It is Aker’s PEOPLE goal to have healthy and motivated employees. No form of discrimination, harassment or degrading treatment is tolerated.

People create Aker

Aker has an international agreement that governs working conditions, committing and uniting Aker and its portfolio companies.

The investment company Aker has 44 Aker’s representatives in the portfolio and group union representative, who employees, all on permanent employ- companies. also lead the international works council ment contracts. Employees are offered for union representatives, communicate full wages in connection with birth and INTERNATIONAL AGREEMENT openly and directly. While acknowled- adoption maternity leaves, extending Aker does not tolerate any form of dis- ging that implementing collaborative coverage beyond what is provided by crimination, harassment or degrading models in international businesses that the national insurance scheme. Furth- treatment of employees – be it in Aker differ greatly in their working life stru- ermore, the company pays full wages or its portfolio companies. This has ctures takes time, it remains an area on when employees, their children or the also been established in the global fra- which Aker continues to work in a dedi- person caring for the children, or other mework agreement with the Norwegi- cated and systematic manner. close family members are ill, providing an United Federation of Trade Unions that the national insurance scheme’s (Fellesforbundet), IndustriALL Global Aker has a long history of collaboration criteria for payment of care benefits or Union, NITO and TEKNA. This coopera- between the main owners, management attendance allowance are met. Aker’s tion agreement, which dates from 2008, and employee representatives, and of personal insurances cover mandated oc- establishes fundamental labour rights open dialogue with the authorities and cupational injuries insurance, as well as and refers to existing labour standards the social partners. This tradition of dia- personal accident insurance, group life to secure the health, safety and environ- logue is referred to as “the Aker model,” insurance, sickness, disability and travel ment (HSE), pay, working hours and a model that brings together parties re- insurance. employment conditions. The agreement presenting different groups with compe- commits Aker to respecting and supporting interests. The objective is to find so- Aker invests in many companies in dif- ting fundamental human rights and uni- lutions that benefit the companies and ferent industries, and there is therefore on rights in the countries where its port- their employees. This collaboration gives little need for aggregate figures for all folio companies have operations. These Aker a clear direction and strong imple- portfolio companies detailing the num- principles are set out in the Universal mentation ability. ber of employees, the percentage of Declaration of Human Rights, the OECD women and men at different levels (ma- Guidelines for Multinational Enterprises The employees are in a position to exert nagement and wages) and measures im- and ILO’s Declaration on Fundamental formal influence on decisions. The em- plemented to achieve various objectives. Principles and Rights at Work. ployee representatives are represented The portfolio companies report relevant in Aker’s and its portfolio companies’ bo- and material information individually. The agreement covers Aker and its in- ardrooms. Aker’s Board of Directors has dustrial portfolio companies with in- six shareholder-elected representatives, From Aker’s point of view as owner, the ternational operations: Aker Solutions, of which the majority are independent primary criteria are that the portfolio Akastor, Kværner, Aker BioMarine and of Aker and its principal shareholder. companies have able, motivated and Norway Seafoods. Ongoing follow-up In addition, the directors include four healthy employees that enjoy good and of the agreement is the responsibility of members elected among the portfolio professional working conditions. These the portfolio companies’ management companies’ employees, none of whom issues are critical, and are monitored by and union representatives. Aker’s CEO represent management. 10 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | People

KEY FIGURES:

2015 2014 Number of employees at Aker ASA 44 47 Women, percentage 45% 47% Rate of healthiness 96.4% 97.6%

Number of staff in Aker-owned companies 26 000 29 000 Women, percentage 21% 22% Rate of healthiness 96.9% 97%

THE GLOBAL WORKS COUNCIL and the lifestyle and performance portal ter than the 2013 survey. Aker has a global cooperation council Aker Active. in which the company, employee repre- The survey covers work load, work sentatives and the operational portfo- Aker Care fosters health and well-being content, individual influence on work lio companies are represented. In 2015 and has the objective of identifying both tasks, colleagues’ support and sense of a decision was made to expand Aker’s personal and work-related health risks, community, ability to realise personal European cooperation council, the Euro- and quickly addressing any health pro- potential, responsibility and quality re- pean Works Council (EWC), and trans- blems that may arise with the employee. quirements, management, information, form it into a global cooperation body, Aker Active promotes physical activity job safety, sense of belonging and well- the Global Works Council (GWC). Aker’s and measures to improve health for being. In 2015 the score for each of these CEO and the portfolio companies’ top all employees in Aker and its portfolio criteria lay in the interval 4.0 to 5.1, with management participated at two EWC/ companies. Since it was set up in 2010, 1 being “very poor” and 6 “very good”. GWC meetings in 2015. In addition, Nor- more than 25 000 employees have vi- The occupational service has received wegian trade unions hold annual union sited the internet portal Aker Active, no reports that any staff have experien- representative conferences and working which had more than 11 000 regular vi- ced or seen others be subjected to bul- groups where Aker’s CEO participates. sitors in 2015. After Aker in April 2015 lying or harassment. ended its cooperation with the Nor- The most important matters in 2015 wegian Ski Association as Norwegian Going forward, it is Aker’s ambition to were related to adjusting capacity and cross-country skiing’s main sponsor, the maintain a good work environment with staff size (see p. 6 of the report), gradual portfolio companies now showcase their high levels of well-being, good health extension of cooperation from a Euro- own “heroes” among their employees to and able, motivated employees. The pean to a Global Works Council (GWC) inspire colleagues to pursue a healthy li- most important measures in this regard and implementing the Aker model in festyle and safeguard their own health. are the new offices at Fornebu and the more countries. initiatives Aker Care and Aker Active. A GOOD WORKING ENVIRONMENT EXPECTATIONS OF THE PORTFOLIO COMPANIES Aker moved to new, modern offices at Aker wants to provide conditions that Fornebuporten in the vicinity of Oslo on enable the company’s own and its port- 30 November 2015. According to a sur- folio companies’ employees to safeguard vey carried out in 2015 by the occupatio- their health and deliver results through nal health service that assesses the level working with others. Two initiatives of job satisfaction and the psychosocial have been put in place in all compani- work environment, the company’s work es, independent of company structure: environment is considered to be good. Aker Care, a health-promoting service, The results are generally somewhat bet- PRIORITY AREAS | People CORPORATE RESPONSIBILITY AT AKER ASA 2015 11

"Aker has a global cooperation council in which the company, employee representatives and the operational portfolio companies are represented"

FOCUS ON: From EWC to GWC

It will take some time to implement the plement the Aker model first in Brazil actual financial situation and are invol- Aker model that improves collaboration and then in Malaysia. This effort stran- ved in internal decisions that affect the between employee representatives and ded because it emerged that the Bra- company and its people. This way of the companies’ managements, in ope- zilian trade unions needed more time. working builds on mutual trust and the rational portfolio companies outside of Naturally, we respect the fact that certainty – and experience – that this Europe working life structures and forms of is in the best interest of all parties. It is collaboration between employee re- this mind set and form of collaboration The chair of the GWC, group union presentatives and management vary that GWC wishes to spread, backed by representative Atle Tranøy at Aker from culture to culture. In Brazil, each Aker as a large owner. comments on his perception of how the of the parties had well-founded positi- company relates to people, human righ- ons, each from their own perspectives. Several of the portfolio companies ts and workers’ rights: The country’s trade union movement is could have demanded to have their understandably reluctant to commit to respective work council at the Euro- “Aker has been clear about the compa- any collaboration before it is confident pean level, based on an EU directive. ny’s beliefs and expectations, but ma- that it is not binding itself to something However, there is a consensus around king this vision a reality will take more that may prove to be advantageous to the fact that cooperating at the Aker than words. In the portfolio companies the company, but at the employees’ level is better and more effective. Aker it is a question of setting priorities and expense. We see that greater openness, acts as the hub for these cooperation ensuring capacity with the companies’ information and participation lead to processes and actively encourages the management and the employee repre- results, but that growing the confiden- operational companies to participate in sentatives. Implementing this is the ce and trust needed to enter binding them. The move from a European to a companies’ responsibility. It is Aker’s forms of cooperation takes time. genuinely global collaboration is only task to make sure that this happens and possible because the employees want to monitor achievements. In Aker and Norwegian businesses it this form of collaboration, and becau- is a given that the employee represen- se the companies facilitate it,” Tranøy One project initiated in 2015 was to im- tatives are informed of the company’s explains. 12 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | Environment

HOW AKER DEALS WITH ENVIRONMENTAL AND CLIMATE-RELATED CHALLENGES: ENVIRON- Aker is a company that has no operating activities and as such its environmental impact is MENT minimal. Aker is a sizable owner in the oil industry and works to develop technologies and solutions that will reduce climate emissions and increase cost-efficiency.

Aker takes responsibility for the environment

Aker works to ensure that its portfolio companies help improve resource efficiency and do their part in reducing climate emissions.

Aker is an investment company with no issues in their own CR reports. to this effect can give the additionally operating activities, and its direct nega- produced oil a lower carbon footprint

tive impact on the environment, apart AKER SOLUTIONS – PART OF THE and at the same time store CO2 safely, from work-related travel, is therefore mi- SOLUTION thus making the oil and gas industry nimal. The company takes responsibility Aker’s agenda as an owner of compa- more sustainable. The company supplies for the environment, mostly through ad- nies working in the oil and gas sector technology to a value chain that captu-

herence to two guiding principles: is to also assist in the development and res, transports and injects CO2 in offsho- commercialisation of technologies and re fields, either for permanent storage

§§ To reduce any negative environmental solutions that improve oil recovery in or in order to utilise CO2 for enhanced impact from operations in Aker and existing field. Compression and pum- recovery. Land-based industry, too, can

its portfolio companies. ping technologies and CO2 injection are use CO2-capturing technology to reduce §§ To increase the focus on the portfolio examples of such efforts. Aker Solutions emissions (see box story). companies’ efforts and solutions to is a driver for improved cost-efficiency address environmental and climate in the oil industry and helps bring down DET NORSKE – LOWER EMISSIONS

challenges. CO2 emissions through the development AND R&D and supply of technology. This is done As the majority owner of Det norske, it is AKER’S EXPECTATIONS OF ITS by means of internal and external impro- important for Aker that the oil company PORTFOLIO COMPANIES vement programmes. Close collaborati- conducts its operations responsibly and The industrial portfolio companies de- on with customers and suppliers is key adopts the highest health, safety and en- velop their own plans to minimise their in this context. vironment (HSE) standards, and that it environmental and climate impact, and contributes to more environmentally fri- are responsible for reducing any nega- Statoil’s enormous Åsgard Subsea endly oil and gas production through its tive environmental impact. As the port- Compression IOR (Increased Oil Re- operations and Research and Develop- folio companies’ owner, Aker expects covery system), with Aker Solutions’ ment work. At the Alvheim field, where the companies to take responsibility for compression and pumping technology, Det norske is the operator, low-emission minimising their environmental impact was delivered in 2015. According to Sta- turbines have reduced NOx emissions above and beyond complying with ap- toil this innovation has increased the with more than 60 per cent. The field also plicable international regulations and Mikkel field’s oil recovery rate from 59 to has a closed flare system. There were no standards. 84 per cent and from 67 to 87 per cent reports of any accidental discharges of for Midgard. Aker Solutions’ analyses chemicals or oil from rigs in 2015. Each company’s Board of Directors show that subsea compression redu- adopts its own governing documents, ces CO emissions with 25-50 per cent 2 OCEAN YIELD REPORTS ON including environmental guidelines, a compared with other solutions. SUSTAINABILITY process which Aker is able to influence Aker’s largest investment in the mariti- through its presence in the boardrooms. Aker Solutions is now working on furth- me sector is Ocean Yield. Aker founded The companies publish information on er solutions and business models to use the ship-owning company in 2012, and it significant and relevant environmental CO2 for improved oil recovery. Using CO2 PRIORITY AREAS | Environment CORPORATE RESPONSIBILITY AT AKER ASA 2015 13

was listed on the Oslo Stock Exchange in of Aker BioMarine’s company objecti- important issues addressed. In 2015 the 2013. Ocean Yield, which owns and char- ves is comprehensive reporting of the government proposed that Norway cut ters out a modern fleet of ships, has defi- company’s carbon emissions by the end its greenhouse gas emissions with at le- ned environmental targets, reports good of 2018. ast 40 per cent by 2030 compared with results and prepares its own sustainabi- 1990. Aker believes in the importance of lity report. None of the company’s ships “GREEN FOCUS” AT FORNEBU setting goals, and that the most effecti- had accidental discharges in 2015. . Aker’s property development compa- ve way of reducing emissions globally is ny Fornebuporten Holding gives im- to replace coal with Norwegian natural AKER BIOMARINE AND HAVFISK ARE portance to cost and energy efficiency, gas. INVESTING IN SUSTAINABLE OPERA- waste management, green areas and TIONS people in a vibrant residential and busi- The Carbon Disclosure Project (CDP) is Aker’s agenda as an owner in the sea- ness environment. In 2015 Aker moved a global, independent non-profit orga- food industry is based on sustainable from Aker Brygge to the newly built nisation, which encourages companies stock management. In order to reduce Fornebuporten outside Oslo. The office to measure and report climate emissi- air pollutant emissions, both Havfisk and buildings have been certified as Energy ons and issues in a common format. In Aker BioMarine have invested in ener- class B, which is a high grade for ener- 2013 and 2014 Aker participated in the gy-saving measures. gy-efficiency. Energy grades range from CDP survey. As there was little change A to G. A grade B signifies that a heat in 2015 relative to 2014, Aker decided Each of Havfisk’s vessels has NOx emis- pump or solar energy has been installed not to participate in the survey last year. sions-reducing targets and action plans, for heating and/or that better insulation In 2015 Aker suggested that Det norske and in 2015 the company was paid more and windows have been installed than participate in the CDP, and the compa- in total support from the NOx fund for that mandated by official building re- ny intends to do so after the Ivar Aasen energy-efficiency measures than the gulations. Aker has been an active lob- field begins production towards the end vessels paid to the fund in the form of byist for expanding public transport to of 2016. NOx tax (approximately NOK 0.15 per the Fornebu area, and has designed the litre of fuel). However, as the vessels Fornebuporten premises so as to facili- As an industrial owner, Aker’s priorities chalked up more days of operation, the tate the construction of a metro station going forward are to work with the port- overall fleet saw a small increase in CO2 between the two office buildings in the folio companies’ management, strategy, emissions in 2015, and Havfisk is working future. commercial opportunities, risk manage- on measures to reduce future emissions. ment, emissions reporting, verification CLIMATE CHALLENGES ON THE and dialogue with environmental orga- AGENDA nisations and other stakeholders. Since setting up Aker BioMarine in In the CR network that brings togeth- 2006, Aker has been a driving force to er the portfolio companies, knowledge turn Aker BioMarine into an internatio- and experiences are shared, and en- nal standard setter for sustainable krill vironmental and climate challenges are fishery and environmental targets. One

Aker’s agenda as an owner in the seafood industry is based on sustainable stock management. Both Havfisk and Aker BioMarine have invested in energy-saving measures in order to reduce air pollutant emissions. 14 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | Environment

The technology center at Mongstad is the world's largest plant for testing

and development of CO2 capture technolgy delivered by Aker Clean FOCUS ON: Carbon. The technolgy is being tested in the cement industry and at energy recovery plants. Reducing climate emissions

The oil sector has built the foundati- with these emissions and discharges, is han Sverdrup fields, are both part of the on for Norway’s wellfare system and ongoing. Utsira Height, which will be electrified has fostered internationally leading, by 2022.

knowledge-based companies. At the Aker has been at the forefront of CO2 same time, environmental and interest capture and storage and invested more In the short term, Norwegian natural organisations point to the oil industry than NOK 400 million through Aker gas can improve climate emissions by as an important cause of the climate Clear Carbon, which has now become replacing coal – while specialised play- challenges we are facing. part of the engineering and techno- ers in renewable energy sources simul- logy community at Aker Solutions. The taneously concentrate their efforts in Aker has been a crucial player in the company has succeeded in effectively their area of expertise. Aker believes

Norwegian oil industry since the mid- capturing about 90 per cent of CO2 in it is possible to achieve a reduction in

1960s, primarily as a mainspring for the flue gas. Capturing CO2 from cement total CO2 emissions through a combi- development of a knowledge-based oil production is a promising step in the nation of natural gas, wind power, so- service industry. It was the Aker-built international climate context, as appro- lar power, hydropower, oil and other

drilling platform “Ocean Viking” that ximately 5 per cent of global CO2 emis- sources of energy, thus helping achieve discovered Ekofisk on 23 December sions are related to cement production. the UN’s 2°C climate target, defined as 1969, the first commercial oil field on In 2015 Aker Solutions was awarded a the global temperature rise by 2100 not the Norwegian continental shelf. Sin- contract by Norcem (HeidelbergCe- exceeding two degrees relative to the ce 2009 Aker has been the majority ment Group) to undertake a feasibility pre-industrial age (pre-1850). shareholder in Det norske, giving Aker study at the Brevik factory. Norcem has

the opportunity to push for the trans- been active in testing a variety of CO2 Aker believes that oil and gas will con- formation of Det norske from an explo- capturing technologies since 2013 and tinue to make up an important part ration company to a fully-integrated oil has indicated that Aker Solutions was of the energy mix for many decades, company with an operator role. chosen on the basis of test results and with production-related risks being an

technology. The CO2 capture techno- important part of this discussion. Inn- The Norwegian oil and gas industry logy is also being tested at Oslo’s was- ovation is key to risk management. As operates to high environmental and sa- te management and energy recovery a shareholder in companies that are te- fety standards, and the supply industry plant. chnology leaders in oil service, explora- and the oil companies on the Norwegi- tion and production, Aker will continue an shelf today are international leaders Det norske is one of Aker’s largest in- its efforts to be part of the solution to in environmentally-friendly exploration vestments. Aker’s ownership ambition global energy and climate challenges. and production of oil and gas. The work is that exploration, drilling, producti- Aker’s fundamental approach is that to develop technologies and solutions on and transport of oil and gas shall enduring solutions to environmental than can further reduce greenhouse gas be done safely, cost-efficiently and as and climate problems must also foster emissions, discharge of environmen- sustainably as possible. Det norske’s value creation in terms of business eco- tally hazardous substances to the sea two most important assets, its owners- nomics. and the environmental risks associated hip interests in the Ivar Aasen and Jo- PRIORITY AREAS | Environment CORPORATE RESPONSIBILITY AT AKER ASA 2015 15

Sustainable fishing

Aker has a history of years of cooperation with WWF Norway on the sustainable management of wild-caught whitefish in the Barents Sea and krill in the Antarctic Sea.

Aker began its collaboration with WWF under CCAMLR (the Convention of the The fund works to ensure continued Norway in 2006 and Aker’s operational Conservation of Marine Living Resour- sustainable use of marine resources, harvesting companies, Havfisk and Aker ces), which is the body that ensures le- with special research emphasis on krill, BioMarine, have worked in direct part- gal sustainable harvesting of krill in the which is an important food source for nership with WWF since 2011. Aker has a Southern Ocean. Aker BioMarine has marine animal species such as penguins, simple philosophy: Either we fish sustai- CCAMLR inspectors on board its vessels. seals and whales. nably, or we don’t fish at all. Aker’s wholly-owned subsidiary was the first krill-catching company in the wor- Following recommendations from Havfisk and WWF Norway have colla- ld to be certified as sustainable by the the fund’s Science Advisory Board, borated closely and well for many years. Marine Stewardship Council (the MSC the Fund’s Board of Directors gave its Excellent results have been achieved in criteria). Aker BioMarine was re-certified backing to three research projects. Sci- terms of sustainable management and for the next five years by MSC in 2015, entists from five different countries will harvesting, and in the joint battle against and its krill products are 100 per cent study penguins, humpback whales and illegal fishing. Havfisk and WWF Norway traceable. krill. The proposed studies were presen- agreed to conclude their formal collabo- ted to the research community, NGOs ration at the end of 2015. In 2015 Aker took the initiative to set up and diplomats at the annual CCAMLR the Antarctic Wildlife Research Fund. meeting in October 2015. The development of Aker BioMari- The fund finances and promotes rese- ne’s business concept and the way the arch on Antarctic ecosystems and has In 2015 Aker BioMarine was the only company has positioned itself has been representatives from Aker BioMarine, company to be given the highest score through dialogue with WWF Norway. WWF Norway and the umbrella orga- (an A-rating) by the independent orga- Aker and the company’s principal sha- nisation ASOC (Antarctic and Southern nisation Sustainable Fisheries Partners- reholder, Kjell Inge Røkke, have spear- Ocean Coalition). Eight leading resear- hip (SFP). headed the development of the innova- chers on the Antarctic are on the fund’s tive Eco-harvesting® method where the Science Advisory Group. Aker has con- design of the fishing net ensures that tributed USD 500 000 in initial capital. there is no by-catch of fish, birds and In addition, Aker BioMarine’s customers other animals. Antarctic krill is managed support the fund financially. 16 CORPORATE RESPONSIBILITY AT AKER ASA 2015 PRIORITY AREAS | Integrity

HOW AKER ADDRESSES CORRUPTION AND ETHICAL CHALLENGES: INTEGRITY Aker works to promote healthy, good values and the right, commercial actions. Aker has introduced its anti-corruption policy in its portfolio companies.

Zero tolerance for corruption

Aker has zero tolerance for all forms of corruption. This applies to all employees in Aker’s portfolio companies.

Aker’s Code of Conduct and anti-cor- The portfolio companies also have their ruption policy contain principles on im- own whistleblowing channels. Aker’s au- portant issues such as bribery, gifts and dit committee is informed of and beco- services, and other possible forms of mes involved in cases involving potential corruption. All employees are expected breaches of the company’s anti-corrup- to be familiar with the Code of Conduct tion policy and Code of Conduct. and anti-corruption policy. Aker employees are expected to lead by example and AKER’S EXPECTATIONS OF ITS have sound ethical values and morals PORTFOLIO COMPANIES based on Aker’s core values and gover- The portfolio companies have procedu- ning documents. res for notifying Aker if situations arise or if there are matters that are – or may be Aker promotes a culture of open dia- – in breach of the anti-corruption policy. logue, where any potential dilemmas In developing the anti-corruption policy can be discussed openly. The Compass in 2014 and 2015, Aker collaborated clo- is a tool that is intended to make it easier sely with its portfolio companies to en- for Aker and its portfolio companies to sure that the policy added value to the navigate challenging waters, especially companies in their everyday work. The in countries where the risk of corruption policy was approved by Aker’s Board of is considered to be high. Directors and it has been implemented. In collaboration with its portfolio compa- Aker has an open integrity channel whe- nies Aker Solutions and Akastor, Aker re matters of concern such as breaches has designed a special anti-corruption of HSE legislation, harassment, insider e-learning programme. Aker’s CEO Øy- trading, money laundering, fraud, bribe- vind Eriksen sent emails with this course ry and kickback schemes and other bre- to a total of 17 742 employees in Aker aches of Aker’s ethical guidelines can be and the portfolio companies, for whom reported. All such reports are forwarded the course was mandatory. As per the to a third party, and are processed under end of 2015, 83 per cent had completed the appropriate policy for this channel. the course. Compliance representatives Four matters were reported through in each of the companies will ensure that the investment company Aker’s whist- the remaining employees complete the leblowing channel in 2015, all pertaining programme. to work-related matters in the portfolio companies. The reports were followed up by the companies in question and Aker saw no need to activate any external follow-up mechanisms. PRIORITY AREAS | Integrity CORPORATE RESPONSIBILITY AT AKER ASA 2015 17

"Aker, together with Aker Solutions and Akastor, has designed a special anti-corruption e-learning programme. The course is mandatory for all employees working in Aker and portfolio companies"

FOCUS ON; Raising anti-corruption awareness

Aker is a Norwegian company with 44 and markets. Moreover, corruption hin- own, business-specific ethical guide- employees; its portfolio companies ders social development and competiti- lines that are intended to spread the have approximately 26 000 employees, on on equal terms in the regions where right values and responsible actions. a turnover of NOK 73 billion in 2015 and Aker’s portfolio companies have ope- Familiarity with international legisla- are represented in almost 60 countries. rations, thus affecting business oppor- tion and practices is a prerequisite for tunities. Corruption is a serious form the prevention of corruption. This is Aker is a transparent and well-organi- of crime that must be addressed. Aker important for some of the companies sed company that exercises ownership and its portfolio companies therefo- in Aker’s portfolio, and Aker expects in Norwegian-registered companies re have a zero-tolerance policy for all its portfolio companies to have the through its shareholdings. In 2015 Aker forms of corruption. In order to clarify competence and resources needed to re-enforced the compliance function, what this means for the employees, an comply with the anti-corruption policy which is tasked with ensuring that the online mandatory training programme and their own ethical guidelines. company acts in line with and fulfils its was developed, upon the initiative of obligations. The compliance function Aker’s CEO. The objective was to incre- Aker’s compliance function will conti- has given importance to anti-corrupti- ase awareness of what Aker means by nue to build on the constructive work on and ethical guidelines. zero tolerance. that has been initiated in this area in 2016. Training in potential dilemmas is Aker has observed that corruption in The operational companies have an in- an important part of raising awareness the industry negatively influences so- dependent responsibility for pursuing and developing the right values. ciety at large, companies, individuals this work, and each company has its 18 AkerCORPORATE ASA årsrapport RESPONSIBILITY 2015 AT AKER ASA 2015 DETTE ERPRIORITY AKER | Hovedpunkter AREAS | Integrity 2015

Transparency and openness

Aker gives importance to engaging in open and direct contact with the company’s stakeholders.

Aker does not support political parties Transparency is the cornerstone in all or organisations, be it financially or ot- communication with the capital market. herwise. The company has not engaged This encompasses quarterly reports and any external lobbyists in 2015. other forms of dialogue with Aker’s sha- re and bond owners, investors, analysts Through fostering clearly defined and and financial markets in general. The open relations, Aker wants to continue company’s website provides a list of its growing trusting relations with employ- 20 largest shareholders, and includes in- ees, employer organisations, employee formation on the de facto owners behind organisations, investors/analysts, aut- the so-called nominee accounts (where horities, financial and educational insti- a stockbroker holds shares belonging to tutions, NGOs and other stakeholders. clients). Aker does its utmost to ensure To summarise, Aker and Aker-owned that its shareholders’ voices are heard. It companies represent a sizable mem- is possible to vote in advance of the ge- ber of the Confederation of Norwegian neral meetings, and Aker’s general me- Enterprise (NHO) and the Federation eting 2016 will be webcast from Aker's of Norwegian Industries (Norsk Indus- home page www.akerasa.com. tri). Aker is a member of the American Chamber of Commerce in Norway and the Norwegian-German Chamber of Commerce. CORPORATE RESPONSIBILITY AT AKER ASA 2015 19

Aker’s ambitions and expectations going forward

AKER’S PRIORITIES IN 2016:

1. Exercising active ownership to create value for 5. Being a clear and inspiring role model for zero tolerance shareholders, employees, customers and the for all types of discrimination, harassment, degrading society of which Aker and its portfolio companies treatment and corruption. are a part. 6. Continuing the work to unify knowledge and interests in 2. Continuing to build a competent, diverse and the fields of energy, fishing, maritime activities and the good work environment at Aker – characterised by environment. openness, well-being, good health and motivated employees. 7. Putting critical and relevant environmental and climate change issues on Aker’s and the portfolio companies’ 3. Clearly expressing Aker’s expectations of its agenda. portfolio company’s values, actions and measures in terms of CR.

4. Supporting the continued development of the Aker model for management-employee representative collaboration in the operational companies, in dialogue with the trade unions.

“People with knowledge and integrity build Aker and create value for society. This is the company’s legacy and future. Aker has shown that it is possible to unify interests and expertise in oil, fishing, maritime activities and the environment and will continue to be a part of the solution to environmental and climate challenges.”

Øyvind Eriksen, CEO and President Aker ASA 20 CORPORATE RESPONSIBILITY AT AKER ASA 2015 Photos: llja Hendel, Baard Gudim, Akastor, Havfisk, Kvaerner | Design: Aker ASA

AKER ASA Oksenøyveien 10, NO-1366 Lysaker, Norway Post: P.O Box 243, NO-1326 Lysaker, Norway Telephone: +47 24 13 00 00 E-mail: [email protected] www.akerasa.com