4 Management and control

Page 30 Board of directors of Petoro AS Page 32 Executive management of Petoro AS Page 34 Corporate governance Page 38 Corporate social responsibility Page 40 Outlook

28 From the drilling floor at Johan Sverdrup. Photo: Arne Reidar Mortensen / Equinor

29 Board of directors of Petoro

Standing from left: Trude J. H. Fjeldstad, Ragnar Sandvik, Anne-Cathrine Nilsen, Per A. Schøyen and Brian Bjordal. Sitting: Hugo Sandal og Gunn Wærsted. (Photo: Elisabeth Tønnessen)

30 Petoro Årsrapport 2019 Kapittelnavn Annual report for the SDFI and Petoro 2019 Board of directors of Petoro

Gunn Wærsted Brian Bjordal Chair Deputy chair

Year of election: 2014 Year of election: 2016 Other directorships: Chair Telenor; director Nationwide Occupation: Self-employed Building Society, director Fidelity Int, director Saferoad Other directorships: Deputy chair Helse Fonna health trust, Education: MBA, BI Norwegian Business School. chair FKH Stadion A/S Career: Executive vice president in DnB responsible for capital Education: Civil engineer, BSc, Heriot-Watt University, management and life insurance; CEO, in addition to being chief Edinburgh executive in Vital Forsikring ASA and member of corporate Career: 1977-1979: Stoltz Røthing (construction); 1979-1984: executive management, 1999-2002; CEO, SpareBank 1 Gruppen Taugbøl & Øverland; 1984-2001: Statoil ASA, Senior Engineer AS, and head, SpareBank 1 Alliance, 2002-2007. Global head pipelines & structures; head of Pipeline & Platform Inspection, of wealth management, president of Nordea Bank Norge and asset owner representative Europipe development, head of member of the corporate executive management of Nordea, early-phase studies Europipe II, Åsgard Transport, Ekofisk by- 2007-2016. pass, Franpipe, director of Process plant Kårstø, director Troll / Sleipner area (Development and Production Norway); 2001- 2015: Gassco AS, President and CEO. Per Arvid Schøyen Director Hugo Sandal Year of election: 2007 Director Occupation: Consultant Education: Law degree, various management programmes Year of election: 2017 Career: Partner, Kluge, 2005-2014. With Esso/ExxonMobil Occupation: Self-employed. 1977-2004, head of corporate affairs from 1989, other positions Education: Civil engineer from NTH (now NTNU) and Degree in Norway and abroad. Also judge and assistant police attorney of Engineer from Stanford University. as well as scientific assistant, University of Oslo. Career: Various positions in Saga Petroleum during the period 1976 -1987. Consultant in Railo International from 1987-1989. Chief executive in Sabico AS 1989-1991, primary activities Trude J. H. Fjeldstad aquaculture and biotechnology. Worked for Deminex, later DEA Director from 1991, chief executive since 1996 until reaching retirement age in 2016. Director Saga Petroleum 1983-1985. Chair OLF, Year of election: 2015 (now NOROG), 1999-2003. Member of NHO’s executive Occupation: VP Portfolio Management New Business/ committee 2000-2004. Managing director Statkraft Tofte AS Education: Economics degree, University of Oslo, financial analyst and MBA in corporate finance, Norwegian School of Anne-Cathrine Nilsen Economics. Career: Previously chief executive in Statkraft Treasury Centre Director (elected by the employees) SA; secretary to the board, Statkraft; senior gas manager, Statkraft; chief executive, Paine de l’Ain Power SAS and Year of election: 2018 portfolio manager for gas in Norsk Hydro ASA. Occupation: Team leader business analytics and performance management, Petoro AS Education: MSc in Business from the Business School at the Ragnar Sandvik University College of Bodø (now Nord University), 2-year Director (elected by the employees) specialisation/cand.merc. from NHH and cand.mag. (roughly equivalent to a bachelor’s degree) from the University of Year of election: 2018 Tromsø. Occupation: Senior adviser, Strategic analysis, Petoro AS. Career: Broad experience from the oil and gas industry, both Education: MSc in Business Economics with specialisation in upstream and downstream from Petoro, Total and Equinor. finance from NHH Previously researcher for Fiskeriforskning AS and trainee at Career: Broad experience as senior adviser for Strategy, Credit Suisse. Commercial and Economics in Petoro, as well as consultant in Accenture for change management, process improvement and system implementation.

31 Management of Petoro

Behind from left: Heidi Iren Nes, Ole Njærheim, Jonny Mæland and Kjell Morisbak Lund. In front from left: Olav Boye Siversten, Grethe Kristin Moen and Hilde Fey Lunde. (Photo: Elisabeth Tønnessen)

32 Annual report for the SDFI and Petoro 2019 Management of Petoro

Grethe Kristin Moen Kjell Morisbak Lund President and CEO Vice president licence follow-up and technology Education: MSc chemical engineering, Norwegian University Education: MSc marine technology, NTNU. of Science and Technology (NTNU) Career: Broad experience from work in upstream and Career: Extensive experience from Norwegian and downstream oil and gas activities. This includes positions as a international oil and gas activities. Has held a number of researcher on marine structures in SINTEF, multiple project, staff management posts in the production, technology and and management positions in Statoil - most recently as HSE commercial areas in Statoil and Shell. Her most recent post at director for midstream and downstream activities. the latter was head of the E&P business in Norway and of HSE in Europe.

Hilde Fey Lunde Ole Njærheim Vice president licence follow-up and commercial Vice president marketing and sales Education: Civil engineer Petroleum technology from NTNU, Education: MBA from the University of Agder, MSc University Diploma from Institute Français du Petrole (IFP), Paris of Surrey and Certified European Financial Analyst, Norwegian Career: Broad experience from the Norwegian and School of Economics (NHH) international oil and gas business. Came to Petoro in 2016 Career: Broad experience from financial and commercial with experience from executive positions in DEA/E.ON/E.ON consultancy as Managing Director for ECON Consulting Group. Ruhrgas both in Norway and the UK, most recently as Manager Njærheim has also been investment director for IKM Invest AS Development and Production. Held a number of positions over and Spring Capital AS. He has previously worked for e.g. Lyse 10 years internationally in both upstream and downstream for Energi and Standard and Poor’s/DRI. ConocoPhillips.

Jonny Mæland Olav Boye Sivertsen CFO Vice president legal affairs Education: MBA from the University of Agder and Education: Law degree from the University of Oslo. specialisation in business analytics from the Norwegian School Career: Has previously held posts as legal affairs officer at of Economics (NHH) in Bergen ExxonMobil, head of the legal affairs department for Mobil Career: Extensive experience from various positions, both Norway, and posts at the Ministry of Petroleum and Energy, the domestically and internationally, in ConocoPhillips since Ministry of Labour and Local Government and the Norwegian 1998, with the exception of two years as Finance Manager in Petroleum Directorate. Also has international experience from Norwegian Energy Company ASA. Comes from the position of Mobil’s US business. Director Financial Reporting and Analysis in ConocoPhillips Norge.

Heidi Iren Nes Vice president organisation and strategy Education: MSc in business economics, Norwegian School of Economics, Bergen. Career: Started in Petoro’s finance department in 2008 after a few years in Subsea 7 Norway. Then transitioned into a new role in Petoro’s marketing department from 2013 to 2019. Was also an employee representative on the Petoro board from 2016 to 2018. 33 Corporate governance

The State’s Direct Financial Interest in petroleum activities on the Norwegian continental shelf (SDFI) represents one-third of Norway’s oil and gas reserves. Petoro manages substantial assets on behalf of the Norwegian state. This requires good governance that safeguards expectations from the owner, stakeholders and society at large.

The Petoro board adheres to the distinctive nature of the enterprise and The company has three main duties: requirements for governance in the contains governing documentation • Management of the state’s public sector specified in “Regulations that shall contribute to the realization participating interests in the joint on Financial Management in Central of Petoro’s goals and strategies and ventures where the state has such Government” and in standards for accomplishment ofits primary tasks in interests at any given time. good corporate governance. The a systematic manner within the given • Monitoring Equinor’s marketing Board observes the Norwegian framework. The company’s privacy and sale of the petroleum produced state’s principles for sound corporate policy is included in the management from the state’s direct participating governance as expressed in Report system. interests, in line with the marketing to the Storting No. 8 2019-2020 “The and sale instruction issued to Equinor state’s direct ownership in companies - Petoro’s values base is integrated in • Financial management for the state’s sustainable value creation” and those its business activities. Petoro’s values direct participating interests. sections of the “Norwegian Code of - dynamic, responsible, inclusive and Practice for Corporate Governance” bold – are the foundation that will define Petoro’s operations are subject to the (updated in 2018) regarded as relevant how the employees work and thereby Norwegian Limited Liability Companies to Petoro’s activities and the frameworks support the goals and strategy. Act and the Norwegian Petroleum Act, established by its form of organisation as well as the Regulations on Financial and ownership. In the following the main Petoro reports on the follow-up of its Management in Central Government — topics with relevance for Petoro AS are corporate social responsibility (CSR) in a including the rules on appropriations further accounted for. separate chapter of this annual report. and accounting. Its management of the SDFI’s activities is governed by the The board emphasises good corporate Activities Ministry of Petroleum and Energy’s governance and management in order Petoro’s main duties are specified in instructions for financial management to ensure that the SDFI portfolio is Chapter 11 of the Petroleum Act and of the SDFI and the annual letter of managed in a way which maximises the company’s articles of association allocation. In addition, the company’s financial value creation, and creates a and are defined in more detail by the articles of association, strategy, values basis for confidence in the company by Ministry of Petroleum and Energy in the and guidelines on business ethics, the owner, the employees, the petroleum annual letter of assignment. including its guidelines for exercising industry and other stakeholders, as well the company’s CSR, provide guidance as society at large. The Board prepares The objective of the company is, on for exercising Petoro’s activities. clear goals, strategies and a risk behalf of the state and at the expense profile for the company, and enterprise and risk of the state, to be responsible Petoro’s strategy is based on the management in Petoro is based on for the commercial aspects related to company’s vision and overall goals. balanced management by objectives the State’s Direct Financial Involvement The objective is to create the greatest with established goals that support the in petroleum activities on the Norwegian possible value and achieve the greatest company’s strategy. The company’s Continental Shelf (NCS), and associated possible revenue for the State from management system is tailored to the activities. SDFI. The company’s vision is to be a

34 Petoro Årsrapport 2019 Kapittelnavn Annual report for the SDFI and Petoro 2019 Corporate governance

driving force on the Norwegian shelf. commitment. Petoro’s follow-up Share capital and dividends Safety and climate requirements of activities in the joint ventures constitute an important framework for is differentiated on the basis of its Petoro has a share capital of NOK 10 the strategy. capacity and the commitment required million and is wholly owned by the to perform its role. The company Norwegian state. The state guarantees Each primary task is broken down into endeavours to achieve good governance the company’s liabilities. The limited defined strategic areas and strategic in the joint ventures and cooperates with company’s own operating costs are prioritisations. Strategic areas signify other operators and partners on further covered by annual appropriations which areas are most important development of good performance- over the fiscal budget. The operating to influence in order to realise the management processes. contribution is presented as operating overall goals. Strategic prioritisations revenue in the limited company’s elaborate on which key measures must Pursuant to the agreements for accounts. The company receives be developed to realise the strategy. petroleum activities, the commercial appropriations to meet its costs and Maturing new wells, drilling efficiency, information Petoro receives is subject does not pay a dividend. Shares in continuous optimisation of the to confidentiality. The company has the company cannot be traded or recovery strategy, cost-effective field internal instructions for dealing with transferred. development and further development inside information received by Petoro. of existing infrastructure, as well as These apply to the company’s directors, Petoro AS established Petoro Iceland efficient operations, have been selected employees, auditor, advisers or others AS in December 2012 as a wholly as the company’s strategic priorities. in a relationship with the company who owned Norwegian subsidiary with receive information that is not publicly an Icelandic branch office in order to Digitalisation is a strategic priority known and/or expressly defined as conduct ongoing commercial follow-up across the company’s main dutiestasks. “inside information” within the meaning of Norwegian participating interests This applies both for the use of digital of the Norwegian Securities Trading Act. in production licences awarded by the solutions in joint ventures, internally in Information that may have an impact Icelandic authorities. Petoro Iceland AS the company and between Petoro and on the stock market must be treated as had no participating interests on the other companies. In 2019, the company “inside information”. Icelandic continental shelf in 2019. The prepared a dedicated digital strategy company is being liquidated. plan. A special system has also been established for approving external Petoro recognises that climate directorships held by employees. Equal treatment of shareholders challenges make it necessary to restrict Employees must ensure that their Shares in Petoro AS are owned by the man-made climate impact. The company ownership of shares does not create state and the company has no personal wants to contribute to ensuring that the any conflict between their personal shareholders. petroleum industry on the Norwegian interests and management of the state’s Shelf leads the way in addressing participating interests or the interests of The state employs a common ownership climate challenges. Climate is an Petoro AS. Senior employees (President strategy to maximise the overall value integrated part of Petoro’s governance. and CEO and employees who report of its ownership interests in Equinor directly to the President and CEO) ASA as well as the state’s own oil and The company is the licensee for the are prohibited from owning shares in gas interests. On this basis, Equinor state’s portfolio on the NCS, with the licensee companies. ASA undertakes the marketing and same rights and obligations as other sale of the state’s petroleum pursuant licensees. The scope of the SDFI Petoro presents separate accounts for to a marketing and sale instruction portfolio gives Petoro the overview SDFI portfolio transactions, which form approved by the general meeting of and insight to be a driving force on the part of the government’s accounts. Cash Equinor ASA. Through Petoro AS’ Norwegian Shelf. The company works to flows generated from the portfolio are articles of association, Chapter 11 of reinforce value creation opportunities transferred to the state’s own accounts the Petroleum Act and the marketing with emphasis on long-term business with Norges Bank. and sale instruction for Equinor ASA, development through focused follow- the government has given Petoro up, supported by in-depth professional responsibility for monitoring that

35 Equinor ASA performs its duties in employees serve two-year terms. considering topical commercial issues accordance with this instruction. and following up strategies, budgets Composition and independence and interim results. The board utilises A duty of commercial confidentiality of the board a balanced scorecard system as a key applies to information Petoro receives instrument for measuring results. through its monitoring of Equinor ASA’s Petoro’s board comprises seven marketing and sales and in its work on directors, five of whom are elected by The board considers major investment the budget and accounts relating to the general meeting. Two are elected decisions within the SDFI portfolio, the marketing and sale of the state’s by and from among the company’s follow-up and consideration of activities petroleum. The company’s ethical employees. Three of the directors are in the joint ventures, and monitoring of guidelines emphasise that recipients of women. Directors are elected for two- gas sales — including an assessment of such confidential information must use year terms and have no commercial the overall risk picture. The Board has it only for its intended purpose and must agreements or other financial chosen to organise its work related to not trade in Equinor ASA’s securities for relationships with the company apart compensation through a sub-committee as long as the information is not publicly from the directors’ fees established by comprising two of the shareholder- known. the general meeting and contracts of elected directors, one of whom is the employment for the directors elected by deputy chair. No other sub-committees General meeting the employees. All shareholder-elected have been established. In the event of directors are independent of the owner. conflicts of interest, the established The Ministry of Petroleum and practice has been for the director Energy, in the person of the minister, The board considers its composition concerned to abstain from the board’s represents the government as sole in terms of expertise, capacity consideration of the matter. Conflicts owner and serves as the company’s and diversity to be appropriate for of interest are a fixed item on the general meeting and highest authority. following up the company’s goals and agenda for the Board’s meetings and Notice of general meetings is issued in assignments. Each director and the consideration of matters. accordance with the provisions of the board as a collective body seek to Norwegian Limited Liability Companies strengthen their expertise in various An annual self-assessment is conducted Act relating to state-owned companies. ways on a continuous basis. These by the board, which encompasses an The annual general meeting is held include participation in courses and evaluation of its own work and mode before the end of June each year. conferences and generally following of working, as well as its collaboration Guidelines for issues to be considered developments within the business area. with company management. The self- by the company’s general meeting are assessment for 2019 is complete. The laid down in the Petroleum Act. Owner Work of the board board reviewed the company’s CSR, decisions and resolutions are adopted business ethics guidelines and board The board has overall responsibility for at the general meeting, which also instructions. elects the company’s external auditor. the management of Petoro, including The board of directors of Petoro AS has ensuring that appropriate management and control systems are in place, Risk management and internal delegated the authority of the general control meeting for the subsidiary Petoro and for exercising supervision of the Iceland AS to the President and CEO of day-to-day conduct of the company’s Risk management in Petoro is a Petoro AS for liquidating the company’s business. The work of the board is continuous process where management activities on the Icelandic shelf. based on instructions which describe and the board identify and prioritise its responsibilities and mode of working. relevant risks for Petoro’s goal Election of directors The board met 8 times in 2019. attainment. The board undertakes an annual review of the company’s most The company is subject to the state’s As an appendix to the instructions important risk areas and internal control. procedures for selecting directors. for its work, the board has adopted In this review, the board emphasises the Directors are elected by the general supplementary provisions for matters risks and opportunities that Petoro itself meeting, which also determines the it shall consider. An annual schedule of can influence through its own measures remuneration of all directors. Directors meetings has been established for the within the frameworks available to it. elected by and from among the work of the board, with the emphasis on The most important operational risks

36 Petoro Årsrapport 2019 Kapittelnavn Annual report for the SDFI and Petoro 2019 Corporate governance

are followed up in the management not wish to raise the matter with their Auditor committees for the prioritised joint superior for other reasons, can notify ventures. Petoro works continuously the internal auditor. The company’s The Office of the Auditor General on risk management in line with values and business ethics guidelines (OAG) is the external auditor for the principles for integrated management clarify principles that shall govern the SDFI portfolio pursuant to the OAG Act. and developments in the company’s risk company’s commercial operations and The OAG verifies that the company’s picture. employee conduct. management of the portfolio accords with the decisions and assumptions of the Storting (parliament) and audits the Identification and management of Remuneration of the board and annual accounts for the SDFI portfolio. risk and risk exposure make up part senior management of Petoro’s business processes. The On the basis of this work, the OAG company works with risk management The general meeting determines the submits its report in a final auditor’s to handle matters that could affect its remuneration of directors. The board letter. ability to attain specified targets and determines the remuneration of the to implement chosen strategies, as well president and CEO. The President and The board has also appointed PwC to as matters that may affect its ability CEO determines the remuneration of conduct a financial audit of the SDFI to submit accurate accounts. Risk other members of the company’s senior accounts as part of Petoro’s internal management is integrated in Petoro’s management. The board’s guidelines for audit process. PwC conducts a financial performance management system. the remuneration of senior employees audit of the portfolio’s accounts and in Petoro comply with the framework submits an independent statement. The company’s internal control shall specified in the Guidelines on pay and This statement details whether the ensure that its activities are carried other remuneration for senior executives annual accounts pursuant to the out in accordance with the company’s in wholly or partly state-owned accounting principles and on a cash governance model and compliance with enterprises and companies, which came basis were rendered pursuant to the regulatory requirements. The internal into force on 13 February 2015. In 2019, rules of the Accounting Act and rules control function forms an integrated the management team consisted of 8 for state accountancy on a cash basis. element in Petoro’s management people, including the President and CEO. The contract with the external auditor processes and is responsible for Details of the actual remuneration paid company covers both financial auditing ensuring that integrity and the are provided in a note to the annual of the SDFI and Petoro’s internal auditor comprehensive situation are assessed accounts. function. In this role, the company for all management information and that audits the internal control systems in the management system is effective. Information and communication accordance with the instructions and an annual plan approved by the board. The The framework for internal control has The Petoro board has established a internal auditor handles the company’s been formulated to provide a reasonable communication strategy to ensure function for receiving notices. level of assurance that goals will be met that an open dialogue is pursued in the following areas: both in-house and externally, so that KPMG AS has been selected by the the company’s employees and other general meeting as the external auditor • Purposeful and cost-effective stakeholders are well informed about its for Petoro AS, including the Petoro operations business activities. Iceland AS subsidiary, which is being • Reliable reporting of accounts liquidated. • Compliance with applicable statutes The company publishes information and regulations via its website, including press releases as well as the interim and annual Guidelines have been adopted by reporting of its results. Petoro’s annual Petoro to facilitate internal reporting report presents a broad description of of improprieties in its activities. the company’s operations, as well as Whistleblowing is also included the directors’ report and the annual in the company’s business ethics accounts. The board’s presentation of guidelines. Whistleblowers who want the company’s CSR is included in this to preserve their anonymity or who do annual report.

37 Corporate social responsibility

Petoro’s CSR presentation is based on governance. This applies to its sustainable manner which minimises guidelines for exercising CSR adopted participation in the individual negative impact on nature and the by the company, and is tailored to its production licences and as a partner environment. Petoro recognises that activities as a licensee on the Norwegian in the joint ventures. The joint venture climate challenges make it necessary Continental Shelf (NCS). CSR comprises agreements for the production licences to restrict man-made climate impact. the responsibilities companies are include governance requirements The company wants to contribute to expected to fulfil for people, society, for the operators. Petoro exercises ensuring that the oil and gas industry climate and the environment affected by its role through active participation on the Norwegian Shelf leads the their activities. The work on corporate in management committees and way in addressing climate challenges. social responsibility is an integral part sub-committees on the basis of a Climate is an integrated part of Petoro’s of the board’s efforts. Petoro’s funding prioritisation of available resources and governance. Petoro will work to ensure for performing its management duties where it can make a difference. Follow- that a broad spectrum of effective and for running the company is provided up of the state’s equity interests in all climate solutions and new technology through appropriations from the joint ventures is incorporated in Petoro’s are considered in selected licenses. government. Pursuant to its mandate, management system. Petoro will not provide monetary Electrification of installations is the support for public welfare purposes. By exercising its supervisory duty, single measure that can provide a Petoro will contribute to continuous substantial contribution toward reducing The owner’s expectations as regards improvement of HSE results for fields emissions from the Norwegian shelf, corporate social responsibility are and facilities where Petoro is a licensee. particularly of CO2. Johan Sverdrup expressed in the report to the Storting The Petroleum Safety Authority started up on 5 October 2019 with power on state ownership. The Ministry of Norway’s annual topic for safety work from shore. As regards the Tampen area, Trade, Industry and Fisheries presented and analysis of the risk level on the the partners in the Snorre and Gullfaks Meld. St.8 (2019-2020) “The state’s Norwegian shelf will be used as a basis fields submitted a Plan for Development direct ownership in companies - for Petoro’s prioritisations. In 2019, and Operation of a floating offshore sustainable value creation” in November. Petoro has been a driving force for wind farm consisting of 11 floating The board’s presentation below, tailored increased quality in major accident wind turbines that will replace about to Petoro’s role and mandate, is based workshops and has demonstrated one-third of the gas-fired power on the on the owner’s expectations and the through the Petroleum Safety Authority platforms with renewable wind power. company’s guidelines for CSR. Norway’s main topic “Safe, Strong, Along with fields such as Troll A, Gjøa Clear” that safety is priority number and Ormen Lange, which have already Petoro undertakes to pursue its one. Focus has also been on learning been electrified, they will contribute to business activities in an ethically from investigations of serious incidents low average CO2 emissions from the prudent, sustainable and responsible across the joint ventures. Major SDFI portfolio. manner. The board emphasises that accident workshops are an important the company’s CSR forms an integral part of the joint ventures’ safety work. Petoro reports emissions to the air and part of its activities and strategies and The company has devoted particular discharges to water from the portfolio in is reflected through its values. These attention to major accident risk within a separate chapter of its annual report include dynamic, responsible, inclusive drilling and wells. Petoro participates on the external environment, based on and bold. The company’s guidelines on every year in HSE management figures obtained from the operators. business ethics support these values. inspections on selected fields and installations. The company contributes to creating Petoro exercises its activities in environmental awareness among all accordance with good corporate Petoro exercises its activities in a its employees through an incentive

38 Petoro Årsrapport 2019 Kapittelnavn Annual report for the SDFI and Petoro 2019 Corporate social responsibility

scheme to encourage increased use follows from the guidelines that the promotion. The company facilitates a of public and environmentally friendly individual is expected to contribute to flexible customising of working hours. transport. Petoro emphasises efficient an inclusive work environment. The When determining wages and in wage ICT solutions and good communication individual has a shared responsibility negotiations, Petoro is conscious systems that can replace travel to to ensure a good environment in terms that men and women must be treated meetings with videoconferencing. of health and safety. The guidelines equally. No systematic or significant also address matters such as the duty differences exist between male and Petoro does not tolerate any form of of confidentiality, potential conflicts female pay in the company. The corruption or other improprieties, of interest and questions linked to company has a number of employees and employees are not permitted to accepting gifts and services. Senior with diverse cultural and ethnic accept remuneration from others in their employees (President and CEO and backgrounds. Working conditions work for the company. Guidelines on employees who report directly to the at Petoro are customised to allow business ethics define what is regarded President and CEO) are prohibited from employment of people with disabilities. as corruption, and the consequences owning shares in licensee companies. of breaching these guidelines are Petoro has established requirements The company has routines for addressed specifically. No breaches of for information and ICT security in its reporting improprieties. The board these guidelines have been recorded. activities. encourages the company’s employees to raise ethical issues and to report Petoro’s employees shall not accept or Petoro’s employees discharge their any breaches of the regulations they offer unlawful monetary gifts or other duties with a high level of integrity encounter. The internal audit function is benefits to secure an advantage for and honesty, and show respect for an independent whistleblowing channel themselves, for Petoro or for others. other people, public authorities and with the right and duty to report to the Employee directorships and secondary business contacts, as well as health, board. The right to report improprieties employment must be approved by safety and the environment. Petoro in the enterprise also comprises the President and CEO in order to aims to maintain a sound psychosocial consultants who carry out assignments avoid possible conflicts of interest. and physical working environment on behalf of Petoro. Guidelines on business ethics detail the for all employees. The company consequences of breaches. No breaches shall have a corporate structure that Petoro expects its partners and of the guidelines have so far been promotes good results within health, contractors/ suppliers to maintain recorded. safety and the environment. Petoro the same ethical standards set for shall actively encourage continuous its own business operations. Petoro’s Petoro’s employees comply with the HSE improvement and believes that standard contractual terms incorporate company’s business ethics guidelines. all incidents can be prevented. The requirements that contractors/suppliers The company’s guidelines on business PetoroAktiv employee association must execute the assignment with a ethics are publicly available. Their organises a number of social, cultural high level of professionalism and in purpose is to clarify principles which and athletic activities for employees. accordance with high ethical standards. will govern the company’s commercial The various events are well-attended. An extract from the company’s operations and employee conduct. All guidelines on business ethics is employees sign the company’s ethical Petoro does not discriminate on the incorporated into all Petoro’s standard guidelines each year. These guidelines basis of gender, religion, national contracts as a normative standard. The set requirements for the individual to or ethnic affiliation, social group or management committee in each joint exercise conduct that does not raise political views. Petoro emphasises venture is responsible for considering questions, based on the requirement equal opportunities for professional and deciding issues related to the to maintain high ethical standards. It and personal development, pay and procurement and contract strategy.

39 5 Outlook

Outlook is described in the Directors’ report, Chapter 1.2.

40 Hywind Tampen floating wind farm Illustration: Equinor

41