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SUSTAINABLE DEVELOPMENT REPORT 2012 REPORT DEVELOPMENT SUSTAINABLE 2012Sakhalin Energyinvestmentcompanyltd

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SUSTAINABLE DEVELOPMENT REPORT 2012 REPORT DEVELOPMENT SUSTAINABLE 2012Sakhalin Energyinvestmentcompanyltd Sakhalin Energy Investment Company Ltd. SUSTAINABLE DEVELOPMENT REPORT SUSTAINABLE DEVELOPMENT REPORTSUSTAINABLE 2012 2012 Sakhalin Energy Investment Company Ltd. SUSTAINABLE DEVELOPMENT REPORT 2012 CONTENT 1 . MESSAGE FROM THE CHIEF EXECUTIVE OFFICER . .4 2 . ABOUT THE REPORT . .6 2.1 GENERAL . .6 2.2 PRINCIPLES OF REPORT CONTENT AND QUALITY DEFINITION . .6 2.3 DEFINITION OF THE REPORT SCOPE . .8 2.4 GRI APPLICATION LEVEL AND PUBLIC ENDORSEMENT . .8 2.5 LIST OF ACRONYMS AND ABBREVIATIONS . .9 3 . CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT . .10 3.1 INTRODUCTION . .10 3.2 SAKHALIN ENERGY’S CSR SYSTEM . .10 3.3 PERFORMANCE STANDARDS . .12 3.4 SUSTAINABLE DEVELOPMENT POLICY . .13 4 . ABOUT THE COMPANY . .15 4.1 SAKHALIN ENERGY, SAKHALIN-2 PROJECT OPERATOR . .15 4.2 MAIN PRODUCTION RESULTS IN 2012 . .15 4.2.1 Assets . .15 4.2.2 Development Projects . .19 4.2.3 Hydrocarbon Production and Export . .19 4.2.4 Sanitary Protection and Safety Zones . .20 4.2.5 Oil Spill Prevention and Response Preparedness . .21 4.3 OPERATIONAL EXCELLENCE PROGRAMME . .23 5 . CORPORATE GOVERNANCE . .24 5.1 COMPANY MISSION, VISION, VALUES, AND PRINCIPLES . .24 5.2 CORPORATE GOVERNANCE SYSTEM AND STRUCTURE . .24 5.3 CORPORATE GOVERNANCE MODEL . .25 5.4 CORPORATE CULTURE . .28 5.5 CODE OF CONDUCT . .29 5.6 RISK MANAGEMENT . .29 5.7 ANTI-BRIBERY AND CORRUPTION . .33 5.8 HSE AND SOCIAL PERFORMANCE MANAGEMENT . .33 5.8.1 HSE and Social Performance Management System . .33 5.8.2 Impact Assessment . .35 5.8.3 Checks and Audits . .35 6 . ECONOMIC IMPACT MANAGEMENT . .36 6.1 IMPORTANCE OF THE SAKHALIN-2 PROJECT FOR THE RUSSIAN FEDERATION AND THE SAKHALIN OBLAST . .36 6.2 THE TAKE OF THE RUSSIAN FEDERATION AND THE SAKHALIN OBLAST . .36 6.3 RUSSIAN CONTENT . .37 6.4 CONTRACTING AND PROCUREMENT MANAGEMENT . .38 6.5 VENDOR DEVELOPMENT PROGRAMME . .39 7 . STAKEHOLDER ENGAGEMENT MANAGEMENT . .40 7.1 STAKEHOLDER ENGAGEMENT: STRATEGY, PRINCIPLES, MECHANISMS AND TOOLS . .40 7.2 STAKEHOLDER ENGAGEMENT PERFORMANCE IN 2012 . .41 7.3 ENGAGEMENT WITH PERSONNEL . .41 7.4 INTERACTION WITH LOCAL COMMUNITIES THROUGH THE COMPANY INFORMATION CENTRES . .42 7.5 COOPERATION WITH SAKHALIN INDIGENOUS MINORITIES . .43 7.6 ENGAGEMENT WITH NON-GOVERNMENT AND NON-PROFIT ORGANISATIONS . .45 7.7 ENGAGEMENT WITH JAPANESE STAKEHOLDERS . .45 7.8 ENGAGEMENT WITH CUSTOMERS . .46 7.9 INTERNATIONAL AND REGIONAL COOPERATION . .46 8 . ENVIRONMENTAL IMPACT MANAGEMENT . .49 8.1 INDUSTRIAL ENVIRONMENTAL CONTROL . .49 8.1.1 Air Emissions Control . .49 8.1.2 Water Use and Discharge Control . .49 2 2012 | Sustainable Development Report 8.1.3 Waste Management Control . .50 8.1.4 Energy Consumption . .51 8.1.5 Greenhouse Gas and Ozone Depleting Substance Emissions . .51 8.1.6 Utilisation of Associated Gas in Production . .51 8.1.7 Environmental Protection Costs and Pollution Payments . .52 8.2 ENVIRONMENTAL MONITORING AND BIODIVERSITY . .53 8.2.1 Environmental Monitoring . .53 8.2.2 Conservation of Biodiversity . .58 8.3 MAINTAINING ONSHORE PIPELINE RIGHT OF WAY . .62 9 . SOCIAL IMPACT MANAGEMENT . .63 9.1 PERSONNEL: MANAGEMENT AND DEVELOPMENT . .63 9.1.1 HR Management and HR Policy . .63 9.1.2 General Information . .64 9.1.3 Personnel Recruitment and Adaptation of New Employees . .65 9.1.4 Remuneration and Bonus System . .66 9.1.5 Social Guarantees, Benefits and Compensations . .66 9.1.6 Company Employees’ Performance Appraisal . .67 9.1.7 Staff Learning and Development . .68 9.2 LABOUR SAFETY AND PROTECTION . .73 9.2.1 Results . ..
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