Corporate Responsibility Report 2016 2 Corporate Responsibility in Aker Asa 2016

CORPORATE RESPONSIBILITY REPORT 2016 2 CORPORATE RESPONSIBILITY IN AKER ASA 2016

CONTENT

1. ACTIVE AND RESPONSIBLE OWNERSHIP 3 Aker’s corporate responsibility 4 Priorities and results in 2016 5

2. SOCIETY Creating value for society 6 The first 21 Aker Scholars 7

3. PEOPLE People create Aker 9 The Aker model globally 11

4. INTEGRITY Zero tolerance for corruption 12 Open dialogue 13

5. ENVIRONMENT Aker takes responsibility for the environment 14 Putting climate problems on the agenda 16 Sustainability enhances competitiveness 17

6. PRIORITIES AND OBJECTIVES FOR 2017 Profitable and forward-looking companies 18 Akers priorities and objectives for corporate responsibility 2017 19

The Aker cooperation model was on the agenda at the Global Works Council’s meeting in 2016. Employee representatives from Europe, Brazil and India attended the meeting together with the CEOs of Aker, Aker Solutions and Akastor. CORPORATE RESPONSIBILITY IN AKER ASA 2016 3

ACTIVE AND RESPONSIBLE OWNERSHIP

Aker ASA (Aker) exercises active ownership with a view to creating value for its shareholders and society at large.

Directly or indirectly, Aker is the largest Aker’s Code of Conduct is the com- achieve results is as important as the shareholder in eight companies listed pany’s governing document setting actual results. Each company’s board of on the Oslo Stock Exchange. The major- out ethical guidelines for employees directors is responsible for regular re- ity on the respective boards of the eight and partners, and principles relating sult assessment and evaluation. listed portfolio companies have no ties to workers’ rights, human rights anti- to Aker. Aker’s management follows up corruption, societal conditions, health, Aker’s investment team, including the the investments with the backing of an the environment and safety (HSE), and legal department, is responsible for the analytic, dedicated investment team. the external environment. In 2016, the continuous follow-up of the portfolio When evaluating and following up its company updated its Code of Conduct, companies. In cooperation with the investments, Aker considers financial, expanding it so as to also encompass finance and accounting department’s commercial, ethical, legal and environ- Aker’s expectations of the codes of controller and risk management function, mental criteria. conduct of its portfolio companies. the legal department also handles issues and questions related to compliance. GUIDELINES AND PRINCIPLES Each industrial portfolio company’s Compliance is the day-to-day work to Aker’s corporate culture is based on board of directors adopts its own ensure that the company’s actions are good business practices, openness, governing documents adapted to the in line with its internal guidelines and honesty and respect for other peo- specific business of the company. The principles, and that it fulfils regulatory ple. These principles form the basis stakeholders, relevant or important obligations. Risk management is about for sound equity investments. As an themes and specific challenges will vary predicting and analysing the risks the industrial investment company, Aker from company to company, depend- company faces, and how to avoid or has governing documents for ethi- ing on its sector: oil and gas, maritime handle undesired incidents. cal guidelines, sound corporate gov- activities and marine biotechnology. ernance and company management, Aker has set up a network consisting of risk management and internal con- OBJECTIVES AND HOW key personnel working with corporate trol. These form the basis for Aker’s THEY ARE PURSUED responsibility (HR) in its portfolio com- exercise of corporate responsibility. Aker’s board of directors defines expec- panies. In the CR Forum, participants The governing documents have been tations for responsible and ethical busi- discuss relevant issues and exchange adopted by the company’s board of ness operations, including how Aker insight and experiences. The objective directors to secure and develop Aker’s exercises its ownership in its portfolio is to promote learning and further im- role as a responsible owner. companies. Regulatory compliance is prove the companies’ work. The net- a minimum requirement. For Aker, the work is currently made up of about 20 way in which its portfolio companies individuals. 4 CORPORATE RESPONSIBILITY IN AKER ASA 2016

STAKEHOLDERS The company’s primary stakeholders are its shareholders and bond holders/in- Aker’s vestors/analysts, Aker and portfolio company employees, and the authorities. The CR report focuses on Aker’s role as owner, emphasising values, expectations and corporate priorities and the results that have been achieved — as well as how the industrial responsibility investment company Aker exercises corporate responsibility.

THE UNITED NATION’S GLOBAL COMPACT The CR report has been prepared Since 2006, Aker has defined four priority areas as being most important to the in accordance with section 3-3c company’s CR efforts:people, environment, integrity and society. These priorities of the Accounting Act, which are based on the United Nations’ Global Compact. requires large undertakings to report annually on their CR work. THE FOUR PRINCIPAL AREAS The report provides an account of Due to staff reductions in the portfolio companies working in the oil sector, the Aker’s role as shareholder in op- most challenging and important area in 2016, as in 2015, has been Society. Society erational companies, and includes is thus an area closely linked to Aker’s priority area People. In terms of Integrity, guidelines and a description of Aker has a joint anti-corruption policy for its own employees and those of its port- how Aker works with CR, as well folio companies. In the area Environment Aker seeks to encourage its portfolio as priorities, the CR results that companies to work for greater resource efficiency and lower climate emissions. have been achieved and the ambitions for 2017. Aker’s 2016 CR report addresses each of these areas. The industrial portfolio companies, in which Aker has ownership interests, all publish their own CR reports. Aker is an investment company with industrial investments focused on the oil and gas sector, maritime assets and marine biotechnology. These businesses build on Norwegian natural re- CORPORATE RESPONSIBILITY REPORTING FOR AKER ASA sources, in particular those of the sea and below the seabed. Aker adopts a careful approach by tak- §§ CR reporting in accordance with the requirements of the ing into account vulnerabilities Accounting Act and risks. §§ Reports to the Carbon Disclosure Project (CDP) Aker has not specified environmental goals for the areas in which the portfolio companies Corporate responsibility reporting for the portfolio companies have operations. In response to an Aker initiative, the marine biotech- §§ Reporting is in accordance with the requirements of the Accounting Act nology company Aker BioMarine §§ Reports to the Carbon Disclosure Project (CDP) has worked with WWF Norway on sustainable harvesting of mar- §§ Reporting is in accordance with the Global Reporting Initiative (GRI) itime resources for the past ten G4 core level — guidelines and requirements in the Accounting Act. years. In the oil and gas industry Aker is a driving force for the development of and investment in §§ Reporting is in accordance with the requirements of the Accounting Act knowledge-based products and technologies as a way of tackling environmental and climate prob- §§ Reporting is in accordance with the requirements of the Accounting Act lems. Aker is familiar with the UN’s sustainability goals which define a global direction for nations, industry, and society. Aker’s subsid- §§ Reporting is in accordance with the requirements of the Accounting Act iary Aker BioMarine is working on defining its operational goals for sustainable development in order §§ In the future, Aker BioMarine will report in accordance with the Global Reporting Initiative (GRI) G4 core level guidelines to ensure that its operations take into account financial and environmental outcomes and impact. List of the CR standards followed by Aker and its industrial portfolio companies. CORPORATE RESPONSIBILITY IN AKER ASA 2016 5

Priorities and results in 2016 for Aker ASA

PRIORITIES IN 2016 ACHIEVED RESULTS IN 2016

1. Value growth + 69% net asset value Exercise active ownership with a view to + 106% share price, including dividend creating value.

2. Working environment 1.6% sickness absence rate (3.5% in 2015). Continue to build a competent, diverse and good work environment at Aker.

3. Code of conduct Aker’s Code of Conduct was updated and We expect Aker’s and its portfolio implemented and covers workers’ rights, companies’ employees to observe this human rights, anti-corruption, societal governing document in their work. conditions, health, the environment and safety (HSE) and the external environment.

4. The Aker model Held the first global conference for union Help develop Aker’s cooperation model delegates and employee representatives in between the operational companies’ Aker’s international portfolio companies. management and union representatives. Aker’s CEO and group union representative agree that the Aker model will be “exported” to more countries.

5. The zero-tolerance principle An important topic at managerial meetings, Be a distinct and inspiring role model union representative conferences and Aker that has a zero-tolerance policy towards arenas throughout 2016. Enshrined in an discrimination, harassment, degrading international cooperation agreement and treatment and corruption. anti-corruption policy for Aker and portfolio company employees.

6. Knowledge building Jointly, Aker and Norway Royal Salmon Continue the work to fuse knowledge and (NRS) have developed a solution for a semi- interests in energy, fisheries, maritime submersible offshore fish-farming facility that activities and the environment. has the potential to resolve environmental and space challenges. This is a unique cooperation fusing fish-farming capabilities (NRS), competencies from offshore construction (Aker Solutions and Kvaerner), environmentally- certified fisheries and operations in extreme waters (Aker BioMarine) with Aker’s industrial capabilities and ownership.

7. Environment and climate on the agenda A natural part of Aker’s and its portfolio To put crucial and relevant environmental companies’ business development. Aker is and climate challenges on the agenda in represented on the board of Norsk Industri Aker and its portfolio companies. (the Federation of Norwegian Industries) and contributes to measures that enhance value creation and reduce climate emissions. In 2016 Norsk Industri developed a “road map” outlining ambitions and climate targets going forward. 6 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | Society

SOCIETY HOW AKER RELATES TO SOCIETY THROUGH ITS OPERATIONS

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 The reports Aker has received indicate for its shareholders, staff, customers that the staff reductions have been and the society of which Aker and its demanding, but that one is seeking to portfolio companies form a part. By resolve these issues within the frame- exercising active ownership, Aker takes work of Aker’s and its portfolio compa- responsibility for how these values are nies’ good and collaborative relations created. with the employee organisations.

Aker expects all its portfolio companies AKER’S EXPECTATIONS OF ITS to engage in an open dialogue with all PORTFOLIO COMPANIES its partners and affected parties. Each Willingness and ability to adapt are company carries responsibility for con- decisive for forward-looking companies. tinuing to develop relations to its stake- Successful change and adaptation holders, both locally and internationally. to the market is contingent on good cooperation with union representatives Overall, the number of staff and tem- and their organisations. Aker has a porary hired personnel in the portfolio long history of involving and including companies fell from 26 026 to 22 124 in union representatives in processes that 2016. This reduction is the consequence are likely to impact significantly on of the need to adjust capacity following businesses and local communities. This a decline in activities in the oil sector. continues to be a priority.

DEVELOPMENT IN VALUE CREATION AND EMPLOYMENT Value Number of creation employees Company 2016 vs 2015 2016 2015 Comments Aker ASA + 69% 40 44 Few employees, industrial - Net asset value + 106% investment company - Share price, including dividend Aker BP* + 182% 1 371 523 Det norske and BP Norge merged in 2016 Ocean Yield* + 3% 21 20 Few employees, charters out ships, operates one vessel Aker Solutions + 37% 14 385 15 395 Capacity adjustment Akastor* + 35% 2 693 5 311 Sale of businesses and capacity adjustments Kvaerner* + 47% 2 663 2 811 Capacity adjustment Aker BioMarine* - 208 164 New plant in Houston, USA * Share price development and dividend in 2016. Aker BioMarine is not listed and is valued at book value. PRINCIPAL AREA | Society CORPORATE RESPONSIBILITY IN AKER ASA 2016 7

The first 21 Aker Scholars

Ever since its foundation in 1841, and society. The company’s main students at the world’s leading Aker has been a driving force for the shareholders, Anne Grete Eidsvig universities as in 2016. development of knowledge-based and Kjell Inge Røkke, established the industry in Norway that reaches out Aker Scholarship programme jointly Aker scholarships are granted to internationally. with Aker to support Master’s and candidates with the right abilities, doctoral students at leading univer- social engagement and personal “Modern-day Norway – and Aker sities abroad. This scholarship offers potential — from all disciplines and – owe their development to knowl- Norwegian talents the opportunity fields of knowledge. The candidates’ edgeable and skilled people. Aker is to be exposed to new impulses, build academic qualifications are assessed proud to support talented persons networks and learn from the world’s by an academic committee. with the capacity to contribute to best universities. the development of business and Support is provided for the full period society,” says Aker President and The first 21 Aker Scholars were of study, and the scheme is designed CEO Øyvind Eriksen. selected in the autumn of 2016. This to supplement other arrangements will be stepped up gradually, and the so that Aker scholars receive full Aker’s ambition is to continue to play target for 2017 is that at least the coverage of all costs, including an active role in developing knowl- same number of qualified candidates accommodation and living expenses. edge-based business and industry for grants for master’s and doctoral

The first 21 Aker Scholars were selected in the autumn of 2016. Here they are portrayed in front of the building where Aker was first founded by the Akerselva river in 1841. 8 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | People PRINCIPAL AREA | People CORPORATE RESPONSIBILITY IN AKER ASA 2016 9

PEOPLE HOW AKER RELATES TO PEOPLE, HUMAN RIGHTS AND WORKERS’ RIGHTS

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 40 vated and healthy employees that en- principles are set out in the Universal employees, all on permanent employ- joy good and professional working con- Declaration of Human Rights, the OECD ment contracts. Of the staff, 24 are ditions. This helps promote a diverse, Guidelines for Multinational Enterprises men and 16 are women. Employees are inclusive and positive working environ- and ILO’s Declaration on Fundamental offered full wages in connection with ment. Competencies, professionality Principles and Rights at Work. birth and adoption maternity /paterni- and diversity are key issues followed up ty leaves, extending coverage beyond by Aker’s representatives on the boards The agreement covers Aker and its what is provided by the national insur- of its portfolio companies. industrial portfolio companies with ance scheme. The company also pays international operations: Aker Solutions, full wages when employees’ children INTERNATIONAL FRAMEWORK Akastor, Kvaerner and Aker BioMarine. or the person caring for the children, AGREEMENT Aker and the portfolio companies will or other close family members are ill, Aker does not tolerate any form of dis- also use their influence to ensure that providing that the national insurance crimination, harassment or degrading suppliers and customers comply with scheme’s criteria for payment of care treatment of employees – be it in Aker the principles in the agreement. Ongo- benefits or attendance allowance are or its portfolio companies. This has also ing follow-up of the agreement is the re- met. Aker’s personal insurances cov- been set down in the global framework sponsibility of the portfolio companies’ er mandated occupational injuries in- agreement with Fellesforbundet (the management and employee and union surance, as well as personal accident Norwegian United Federation of Trade representatives. Aker’s CEO and group insurance, group life insurance, sickness, Unions), IndustriALL Global Union, union representative, who also lead the disability and travel insurance. In 2016, NITO (the Norwegian Society of En- global works council for union represent- Aker expanded its occupational health gineers and Technologists) and Tekna atives, communicate openly and directly. service for its staff. All Aker employees (the Norwegian Society of Graduate While acknowledging that implement- have access to a physician, health coun- Technical and Scientific Professionals). ing collaborative models in internation- selling and medical treatment insur- At Aker, it is possible to raise issues or al businesses that differ greatly in their ance, and are offered an annual medical potential issues as part of the dialogue working life structures takes time, Aker exam to prevent illness as well as indi- between the union representatives and continues to dedicate systematic efforts vidual follow-up as required. the management. In 2016, as in preced- towards achieving this. ing years, no events violating the 2008 Aker’s management consists of the agreement were reported. THE AKER MODEL President and CEO and the CFO. Both Aker has a long history of collaboration are men. The investment company in- This cooperation agreement establishes between its main owners, management vests in many companies in a variety of fundamental labour rights and refers to and union representatives, and of open industries, and the respective portfolio existing labour standards to secure the dialogue with the authorities and the company report their employee num- health, safety and environment (HSE), social partners. This tradition of dia- bers, ratio of women/men at different pay, working hours and employment logue is referred to as “the Aker mod- levels, HSE and measures to improve in conditions. The agreement commits el,” a model that brings together par- different arenas and promote various Aker to respecting and supporting ties representing different groups with objectives. In its ownership capacity, fundamental human rights and union competing interests. The objective is to Aker is focused on ensuring that the rights in the countries where its port- find solutions that benefit the compa- portfolio companies have able, moti- folio companies have operations. These nies and their employees. This collabo- 10 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | People

ration gives Aker a clear direction and ics, cooperation, the market, capacity strong implementation ability. adjustment and staffing adaptation.

The employees are in a position to ex- LIFESTYLE AND HEALTH ert formal influence on decisions. The Aker wants to provide conditions that union representatives are represented in enable the company’s own and its port- the boardrooms of Aker and its portfo- folio companies’ employees to safe- lio companies, Aker BP, Aker Solutions, guard their health and deliver results Akastor, Kvaerner and Aker BioMarine. through working with others. Two initi- Aker’s board of directors has six share- atives have been put in place in all com- holder-elected representatives — three panies, independent of company struc- of whom are women and three men. ture: Aker Care, a health-promoting The majority of Aker’s directors are in- service, and the lifestyle and perfor- dependent of Aker and its principal mance portal Aker Active. shareholder. In addition, the directors include four members elected among the Aker Care fosters health and well-be- portfolio companies’ employees, none of ing and has the objective of identify- whom represent the management. ing both personal and work-related health risks, and quickly addressing THE GLOBAL WORKS COUNCIL health problems. Aker Active promotes Aker has a global cooperation council physical activity and measures to im- in which the company, union repre- prove health for all Aker and portfolio sentatives and the operational portfolio companies’ employees. The key to this companies are represented. In 2015, a is the global online portal Aker Active decision was made to expand Aker’s which has, since it was set up in 2010, European cooperation council, the attracted more than 25 000 unique us- European Works Council (EWC), and ers among Aker’s portfolio companies. transform it into a global cooperation body, the Global Works Council (GWC). A GOOD WORKING ENVIRONMENT Aker’s CEO and the portfolio compa- Aker has a good working environment, nies’ top management participated at as has been documented through sur- the GWC’s annual conference in 2016. In veys, most recently in 2015, as well as addition, Norwegian trade unions hold in 2013. annual union representative conferences and working groups where Aker’s Going forward, it is Aker ASA’s ambition CEO participates. The conferences and to maintain a good work environment meetings with the union representa- with high levels of well-being, good tives are arenas for open dialogue and health and able, motivated employees. discussions on issues such as HSE, eth-

KEY FIGURES:

2016 2015 Number of employees, Aker ASA 40 44 Percentage of women 40% 45% Sick leave 1.6% 3.5%

Number of employees, 22 124 26 026 Aker-owned companies Percentage of women 19% 21% Sick leave 2.8% 3.1% PRINCIPAL AREA | People CORPORATE RESPONSIBILITY IN AKER ASA 2016 11

The Aker model globally

The Aker model is being “exported” to new countries so as to intensify the cooperation between the portfolio companies’ union representatives and management.

This was an important item on the agenda at the meeting of Aker’s European Works Council (EWC) in October 2016. The employee representatives from Europe, Brazil and India attended the meeting together with the CEOs of Aker, Aker Solutions and Akastor. The Works Council is gradually expanding to become a Global Works Council.

Aker’s President and CEO Øyvind Eriksen and group union representative Atle Tranøy, who heads the Global Works Council, agree that the Aker model for union/employee representatives and the management/principal shareholder will be rolled out globally. Both are fully aware that implementing the Aker model outside of Europe will take time. One of the reasons is that there are cultural differences in working life structures and forms of cooperation among countries.

“One of the things that makes the Norwegian cooperation model unique is the fact that the employees are just as concerned about the company’s welfare as the management and owners,” says group union representative Atle Tranøy, and goes on:

“Active involvement creates a sense of belonging and ownership to one’s place of work, and fosters motiva- tion and commitment to one’s own company. Due to the large cultural differences, rolling this model out internationally is complicated. But if we show trust, openness and respect it can be done. Rolling out the Aker model internationally will demand dedication and commitment of portfolio company management teams, as well as willingness to face and solve challenges that arise.”

Tranøy and Eriksen comment:

“It is essential to understand that the role of Aker’s informal cooperation culture is just as important as the formal aspects. The cooperation model is built on the contact and dialogue in the statutory bodies and bodies established in the agreements. However, the role of informal day-to-day dialogue and interaction based on openness, trust and respect is even more important. In fact, it is at the informal level that most matters are resolved and the foundation for cooperation and development, productiv- ity and improvement is built.” Aker’s group union representative Atle Tranøy heads the Global Works Council. 12 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | Integrity

INTEGRITY CODE OF CONDUCT HOW AKER ADDRESSES CORRUPTION AND ETHICAL CHALLENGES

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- der the appropriate policy for this chan- corruption policy contain principles on nel. It is possible for persons reporting important issues such as bribery, gifts matters through this channel to remain and services, and other possible forms anonymous in relation to Aker and only of corruption. All employees are ex- reveal their identity to the third par- pected to be familiar with the Code of ty. Aker will not retaliate or sanction Conduct and anti-corruption policy in persons that report possible matters their area. The Code of Conduct was of concern. expanded and updated in 2016, and measures to implement the policy have In 2016, Aker received no reports relat- had high priority for Aker and portfolio ing directly to Aker. company staff, the boards of Aker and the portfolio companies, at managerial EXPECTATIONS TO THE meetings and at conferences for union PORTFOLIO COMPANIES and employee representatives. The portfolio companies have proce- dures for notifying Aker if situations Aker employees are expected to lead arise or if there are matters that are – or by example and have sound ethical val- may be – in breach of the anticorruption ues and morals based on Aker’s core policy. All of Aker’s industrial portfolio values and governing documents. All companies – Aker BP, Aker Solutions, Aker employees have gone through an Akastor, Kvaerner, Aker BioMarine and e-learning programme. The portfolio Ocean Yield – have their own whistle- companies update and revise their re- blowing channels. Aker’s audit commit- spective codes of conduct in accord- tee is informed of and becomes involved ance with Aker expectations. in cases involving potential breaches of the company’s anti-corruption policy INTEGRITY CHANNEL and other compliance matters related Aker has an open integrity channel on to certain defined criterias.. Any mat- the company’s website where matters ters under the portfolio companies are of concern such as breaches of HSE reported by the companies individually. legislation, harassment, insider trading, money laundering, fraud, bribery and Aker expects the portfolio compa- kickback schemes and other breaches nies to have clear guidelines for their of Aker’s ethical guidelines can be re- work with suppliers and their use of ported. All such reports are forwarded sub-suppliers. to a third party, and are processed un- PRINCIPAL AREA | Integrity CORPORATE RESPONSIBILITY IN AKER ASA 2016 13

Open dialogue

"In Aker, we strive to keep an open dialogue with our stakeholders," says CEO Øyvind Eriksen.

Through fostering clearly defined and open relations, Aker wants to continue growing trusting relations with employees, employer organisations, employee organisations, investors/analysts, authorities, financial bodies and educational in- stitutions, NGOs and other stakeholders. To summarise, Aker and Aker-owned companies represent a sizable member of NHO (the Con- federation of Norwegian Enterpris- es) and Norsk Industri (the Fed- eration of Norwegian Industries). Aker is represented on the board of Norsk Industri and in 2016, Aker be- came an associated member of the foundation World Economic Forum.

Aker does not support political parties or organisations, be it financial- ly or otherwise. As in previous years, the company has not engaged any "In Aker, we strive to external lobbyists in 2016. keep an open dialogue with our stakeholders,"

CEO Øyvind Eriksen. 14 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | Environment

ENVIRONMENT HOW AKER DEALS WITH ENVIRONMENTAL AND CLIMATE-RELATED CHALLENGES

Our environmental commitments

Aker works to ensure that its portfolio companies help improve resource efficiency and reduce climate emissions.

Aker is an investment company with no CR FORUM Aker Solutions has been a leading engi- operating activities, and its direct neg- Aker is the driving force behind and neering and technology company in the ative impact on the environment, apart coordinator for the Corporate Respon- field of handling CO₂ challenges in re- from work-related travel, is minimal. sibility Forum (the CR Forum). This is lation to offshore petroleum activities. The company takes responsibility for a network consisting of key personnel the environment, mostly through ad- working with corporate responsibility in Aker has been a driving force for the herence to three guiding principles: Aker and its portfolio companies, where capture and storage of CO₂, investing they can share insights and experiences. more than NOK 400 million in Aker §§ Being a driving force to reduce any Environmental and climate problems are Clean Carbon, which is now part of Aker negative environmental impact important items on the agenda. Aker be- Solutions’ engineering and technology from the operations of its portfolio lieves in the importance of setting goals, community. Aker Solutions is a driv- companies. and that the most effective way of re- er for improved cost-efficiency in the §§ Increasing the focus on the portfo- ducing emissions globally is to replace oil industry and helps bring down CO₂ lio companies’ efforts and soluti- coal with Norwegian natural gas. emissions through developing and sup- ons to address environmental and plying technology. Close collaboration climate challenges. CDP with customers, partners and suppliers §§ Increasing awareness of environ- The Carbon Disclosure Project (CDP) is is key in this context. mental and social/societal out- a global, independent non-profit organ- comes and consequences of the isation, which encourages companies Aker Solutions is now working on fur- portfolio companies’ activities. to measure and report climate emis- ther solutions and business models to sions and climate-related issues. Aker use re-injection of CO₂ in reservoirs EXPECTATIONS TO THE participated in the CDP survey in 2016, for improved oil recovery. Using CO₂ PORTFOLIO COMPANIES and was awarded a D. This is on a par to this effect can give the additionally The industrial portfolio companies de- with the result achieved in 2014 and is produced oil a lower carbon footprint velop their own plans to minimise their thus a satisfactory result. Aker does not and at the same time store CO₂ safely, environmental and climate impact, submit any emissions accounts and can thus making the oil and gas industry and are responsible for reducing any thus not expect to earn a high score. more sustainable. The company sup- negative environmental impact. Each Aker encouraged Aker BP to join the plies technology to a value chain that company’s board of directors adopts CDP survey, and the company earned a captures, transports and injects CO₂ in its own governing documents, which C in 2016. offshore fields, either for permanent also include environmental guidelines. storage or in order to utilise CO₂ for en- The companies publish information on AKER SOLUTIONS hanced recovery. Land-based industry, significant and relevant environmental Aker’s agenda as an owner of compa- too, can benefit from CO₂-capturing issues in their respective CR reports. As nies working in the oil and gas sector technology to reduce emissions. Aker owner, Aker expects its companies to is to also assist in the development and Solutions has succeeded in effectively take responsibility for minimising their commercialisation of technologies and capturing about 90% of CO₂ in flue gas. environmental impact above and be- solutions that improve oil recovery in yond the requirements of international existing fields. Compression and pump- Capturing CO₂ from cement production and local law and norms. ing technologies and CO₂ injection are is a promising step in the international examples of such efforts. Since 1996, climate context, as approximately 5% of PRINCIPAL AREA | Environment CORPORATE RESPONSIBILITY IN AKER ASA 2016 15

global CO₂ emissions are related to per day. Average CO₂ emissions this industry. Aker Solutions’ tech- were 46 kg per produced stand- nology has been tested, with good ard cubic metre (Sm3 o.e.). This is results, at Norcem’s cement plant in about 20% lower than the average Brevik (Heidelberg Cement Group). on the Norwegian shelf (58 kilo/Sm3 Similar results were achieved at o.e.). According to the International Oslo’s waste management and en- Association of Oil & Gas Producers ergy recovery plant. (IOGP) the average for the sector is 110 kilo/Sm3 o.e. AKER BP In 2016 Aker increased its exposure ELECTRIFICATION in oil exploration and production. The Ivar Aasen field began produc- Aker’s role in the merger between tion on schedule in December 2016. Det norske and BP Norge to form Ivar Aasen is supplied with power Aker BP was pivotal. Aker believes from the Edvard Grieg platform and that oil and gas will continue to will become fully electrified as part make up an important part of the of the Utsira height development. energy mix for many decades, with production-related risks being an The provision of onshore electricity important part of this conversation reduces the Aker BP-operated oil going forward. There is a need to field Valhall’s CO₂ emissions to the address risk management with in- tune of emissions from 100 000 novation that gives importance to cars per year. At the Valhall field safety and climate problems. the low-pressure flare was closed in November 2015, and this was the As an owner with a 40% stake in end of continuous flaring. The de- Aker BP, Aker is concerned that the sign of the new production platform exploration and production compa- at Valhall was based on a closed ny acts responsibly and to the high- flare system (high-pressure and est health, environment and safety low-pressure flares). The emissions (HSE) standards, and contributes from this field were reduced with to more environmentally friendly oil 38% in 2016 relative to 2015. and gas production through its operations, research and development. About 16% of Aker BP’s total pro- The emissions duction in 2017 is produced with Aker BP is one of Europe’s largest in- onshore power. In addition, the NOx dependent exploration and produc- emissions have been more than from the Valhall tion companies with a portfolio of halved through low-emissions tur- 97 licenses on the Norwegian shelf bines and closed flare systems. field were at the end of 2016, of which 46 are own-operated. Aker BP’s production in 2016 was an average of 118 reduced with 200 BOE (barrels of oil equivalent) 38% in 2016. 16 CORPORATE RESPONSIBILITY IN AKER ASA 2016 PRINCIPAL AREA | Environment

Putting climate problems on the agenda

Aker is represented on the board ority. Working through the collabora- of Norsk Industri (the Federation of tion arena KonKraft, Norsk Industri and Norwegian Industries), the largest na- Norsk Olje og Gass (Norwegian Oil and tional association in NHO (the Con- Gas) have drawn up a road map for federation of Norwegian Enterprises) the Norwegian continental shelf. Other working for enhanced value creation members include LO (the Norwegian and lower climate emissions. Through- Confederation of Trade Unions), includ- out 2016 Norsk Industri has developed ing Fellesforbundet (the Norwegian several industry-specific road maps to United Federation of Trade Unions) and promote industrialisation and solve Industri Energi (the Norwegian Union climate problems. of Industry and Energy Workers), and Norges Rederiforbund (the Norwegian COP21 (the Paris agreement) adopted Shipowners' Association). The road ambitious climate targets to reduce map has two overriding objectives: the rise in the global average temper- ature to well below two degrees Cel- 1. Outline the industry’s ambitions for sius compared with the pre-industrial long-term production and value cre- era. COP21 also agreed that global, ation on the Norwegian continental man-made greenhouse gas emissions shelf in the period leading up to between 2050 and 2100 should not 2030 and 2050. exceed levels that can be absorbed by 2. Outline ambitions for lower green- nature and through carbon capture, house gas emissions in the petrole- use and storage. um business for the same period.

Aker, Aker BP, Aker Solutions and Prepare action plans to describe industry Kvaerner have involved themselves in initiatives to achieve results and resolve this effort, and Aker believes that co- climate problems. KonKraft has a role in ordinating targets and action plans ensuring long-term improvements in the through industry organisations and Norwegian oil and gas sector. national associations should be a pri- PRINCIPAL AREA | Environment CORPORATE RESPONSIBILITY IN AKER ASA 2016 17

Sustainability enhances competitiveness

Through taking the initiative and vironmental results and impact. It is working closely with partners and this emphasis on sustainability that other stakeholders, Aker BioMarine makes the company competitive. has turned sustainability into its The UN’s sustainable development competitive edge. goals form a global framework that provide guiding principles and in- Sustainability has always been an in- spiration for Aker BioMarine’s busi- tegral part of Aker BioMarine’s business development. Cooperation ness model. The company has been with non-governmental organisa- a pioneer in building up sustainable tion (NGOs), authorities, business catch operations in the Antarctic. partners and other players has been Aker BioMarine has done this in — and continues to be — important partnership with stakeholders who to the company’s development. are experts in those areas where Aker BioMarine lacks the necessary Since its formation, Aker BioM- expertise. In cooperation with envi- arine has cooperated success- ronmental organisations and other fully with WWF. The company’s stakeholders, Aker BioMarine has patent-protected catch technology identified challenges and sought Eco-Harvesting® ensures that any out opportunities. These efforts by-catch is at an absolute minimum. are an important aspect of Aker Both vessels have been certified BioMarine’s business development. by the Marine Stewardship Coun- cil (MSC), which confirms that krill Over the course of a mere ten catch is sustainable and that prod- years, Aker BioMarine has grown ucts are 100% traceable to the site from scratch to a turnover of NOK of catch. Aker BioMarine set up 1 billion, and the company is now the special interest organisation the world’s leading supplier of krill- ARK (Association of Responsible based ingredients. Billions have Krill Harvesting Companies). The been invested throughout the val- organisation is open to all krill op- ue chain, all the way from sustain- erators and promotes responsible able catching to environmentally resource management. Moreover, certified vessels (MSC-certified) to Aker BioMarine also took the initi- innovative product development, ative to form the Antarctic Wildlife production, logistics and long-term Research Fund (AWR). Its research partnership agreements with glob- is funded by Aker BioMarine and its al leaders in supplying consumers business partners. Leading scien- and trademarks. tists and environmental organisations/NGOs define the need for new As part of its commercial develop- knowledge and undertake ecosys- ment, Aker BioMarine gives great tems research in the Antarctic. importance to its financial and en- 18 CORPORATE RESPONSIBILITY IN AKER ASA 2016

Profitable and forward-looking companies

The primary aspect of Aker’s corporate responsibility is to continue to develop profitable, forward-looking companies and workplaces. This is contingent on achieving positive financial, environmental and societal outcomes and consequences, i.e. sustainable development.

As an investment company, Aker has So far, Aker has not defined environ- a required yearly rate of return of at mental or sustainability goals for its least 12% over a cycle. Since Aker was portfolio companies, but the compa- re-listed on the Oslo Stock Exchange ny has intensified its efforts to raise in September 2004, average annual awareness in the portfolio companies shareholder return has been 27.3% regarding environmental and soci- through share price development and etal priority-setting and solutions. As paid dividends. owner, Aker will continue to form part of the solutions for environmental and Aker is an able, professional ownership climate problems. community and will continue its good work, pushing for human and workers’ rights in its portfolio companies, | WORK IN PROGRESS AKER ASA HEADQUARTER and pursuing a zero-tolerance policy for discrimination, harassment and corruption. Aker will support “export- ing” the Aker model for management- employee representative cooperation to other countries. ILJA C. HENDEL FOTOGRAF AKER_ASA_45_160120 | ARBEIDSKOPI TIL UTVALG | CORPORATE RESPONSIBILITY IN AKER ASA 2016 19

Priorities and objectives for corporate responsibility 2017

 PEOPLE: HUMAN RIGHTS AND WORKERS’ RIGHTS Aker ASA Portfolio companies Objectives A. A good working environment Higher scores on measurement criteria with competent and motivated than were achieved in the company’s employees at Aker last survey in 2015 98% rate of healthiness or higher at B. Increase the rate of employee healthiness at Aker and its portfolio companies Aker and its portfolio companies C. Evaluation of the cooperation agreement among IndstriALLGlobal Union, No discrimination, harassment or Fellesforbundet (the Norwegian United Federation of Trade Unions), NITO degrading treatment of employees (the Norwegian Society of Engineers and Technologists) and Tekna (Norwe- gian Society of Graduate Technical and Scientific Professionals) D. Implement the Aker cooperation model in companies in more countries At least one non-European country

 INTEGRITY: PROMOTE HEALTHY, SOUND ATTITUDES AND COMMERCIALLY APPROPRIATE ACTIONS Aker ASA Portfolio companies Objectives A. Focus on following up that the port- A. Implement Aker’s Code of Conduct The portfolio companies shall have folio companies update their codes in the portfolio companies’ codes of codes of conduct that comply with of conduct in accordance with the conduct Aker’s requirements and expectations one adopted by Aker in 2016 B. The Audit committee has defined some Key Performance Indicators (KPI) for Final KPI standards and reporting to compliance training at Aker and portfolio companies. be put in place in 2017

 ENVIRONMENT: PART OF THE SOLUTION Aker ASA is a company with no operating activities, and its direct impact on the environment is therefore minimal. Aker plays a significant role as owner in the oil industry and works topromote technologies and solutions for lower greenhouse gas emissions and increased cost-efficiency. Objectives and results in this area are followed up and reported by the respective portfolio companies individually. Since Aker first began catching krill in the Antarctic Sea in 2003, Aker has worked on the basis of stricter environmental standards than are defined by international regulations and laws.Aker’s overarching objective has been that Aker BioMarine continue to be a leading company at the forefront of sustainable business development throughout the value chain — from catch to finished product and applications.

 SOCIETY: RESPONSIBLE OWNERSHIP — LONG-TERM VALUE CREATION Ever since its foundation in 1841, Aker has been a driving force for the development of knowledge-based industry. As an industrial investment company, Aker’s goals are long-term value creation through responsible and forward-looking workplaces in its portfolio companies. Required rate of return: At least 12% per year. 20 CORPORATE RESPONSIBILITY IN AKER ASA 2016

AKER ASA Oksenøyveien 10, NO-1366 Lysaker, Norway Post: P.O Box 243, NO-1326 Lysaker, Norway Telephone: +47 24 13 00 00 Photos: Kim Ramberghaug, Ilja Hendel, Frank Grebstad, Fotograf Ørnelund and Aker-owned companies E-mail: [email protected] Design: Tania Goffredo Design www.akerasa.com