RC 6474 Sustainability Report Looking to the future 2013 ‹ Oando PLC 2, Ajose Adeogun Street Victoria Island Lagos, Nigeria Tel: +234 1 270 2400 E-mail: [email protected] Website: www.oandoplc.com www.oandoplc.com Designed and produced by Westbrand Design Ltd www.westbrand.net I [email protected] I +234 (0)1 453 4616 Oando PLC is the largest integrated energy solutions group in sub-Saharan Africa with a primary and secondary listing on the Nigerian Stock Exchange and JSE Limited respectively. What’s Inside About this report Our approach 06 Our sustainability strategy 10 Vision statement Reporting framework 13 Chairman’s statement To be the premier 14 Group Chief Executive’s statement 16 Awards & Recognitions company driven 20 by excellence Stakeholder engagement Our engagement approach 24 Key stakeholders 26 Principal stakeholder concerns 34 Governance 36 Mission statement Risk management 38 To be the leading Creating value through inspirational leadership Creating value through inspirational leadership integrated energy 42 Protecting our environment 48 Investing in our people solutions provider 56 Safety is a priority 60 Promoting ethical conduct 64 Creating value through strategic partnerships Working together 70 Developing the industry 74 Building a strong foundation 76 Targets and data Targets and Data 82 GRI Content Index 89 Feedback 90 - Oando Sustainability Report 2013 Looking to the Future 03 Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships Our approach 06 Our sustainability strategy About this report 10 Reporting framework 13 Chairman’s statement 14 Group Chief Executive’s statement 16 Awards & Recognitions 20 - Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future 04 05 About this report Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships Our approach We are mindful of the impact of our activities on our various stakeholders and on the environment. We work at identifying, understanding and proactively managing these impacts in a responsible manner. As part of our sustainability process, Introduction Identifying material issues senior leadership within the Company This is our second sustainability report. Each year our operating entities hold are interviewed to determine their It explains the Company’s economic, numerous stakeholder engagement The Triple-Bottom Line perspective on sustainability as a social and environmental strategies activities which help us identify issues concept and how they have and highlights our performance in the of concern. Issues identified within the Economic incorporated sustainability principles reporting year January 1 to December current period or during previous years into their respective businesses and 31, 2013. It reports the activities of are reviewed by management who operations. This ensures that Oando PLC and the divisions over monitor our progress on corrective Social sustainability is considered at every which the Company has management actions aimed at addressing such level of management and also helps control: issues. We also ensure that feedback the Company identify key training Environmental from stakeholders are incorporated into opportunities for employees. Each of ‹ Exploration and Production our overarching sustainability strategy. these activities have helped us define ‹ Energy Services our priority material issues and the Oando ‹ Gas and Power appropriate content for this report. ‹ Marketing ‹ Supply and Trading ‹ Terminals and Logistics This report concentrates primarily on Three Spheres in Sustainability our operations in Nigeria, although we develop even more robust approaches highlight aspects of our strategic plans Our material issues to better understand stakeholder During the year, senior management that affect our operations at locations concerns and material sustainability Our Material Issues in 2013 collated and analysed the results of outside Nigeria, where applicable. issues. There will be a review of our ‹ Creating value regular engagement with key stakeholder engagement processes ‹ Building partnerships stakeholders. Our material issues for Our report is aimed at our stakeholders and systems in 2014 looking at various 2013 were identified from these and it focuses on material issues, ‹ Access to technology options that enable stakeholders consultative interactions and developments and concerns that have contribute directly towards our Environmental ‹ Investing in our people collaborative activities as listed below. emerged during the year under review. sustainable development and provide We consider an issue material where it ‹ Workforce wellness an opportunity to get an external These issues have been organised has the potential to negatively impact perspective on our Sustainability ‹ Building our communities under the triple bottom line criteria for our business leadership position, strategy. commercial viability and social ‹ Promoting ethical conduct assessing organisational performance: Sustainability economic, social, environment which relevance to the communities and We aim to develop a Sustainability ‹ Protecting the environment have been addressed within this people we work with. At Oando, we are Panel comprising senior management, ‹ Water and air report. mindful of the impact of our activities independent experts and advisors on our various stakeholders and on the ‹ Waste management who will review the results from This process offers us the opportunity environment. We work at identifying, stakeholder engagement activities, Social Economic to improve on the Company’s services understanding and proactively monitor the Company’s performance in and reputation as we continuously managing this impact in a responsible relation to material issues identified, develop the appropriate strategies to manner. In making business decisions advise on risks and opportunities and navigate the social and political that push forward our corporate make recommendations to the Oando challenges present in our environment. strategy and objectives, we consider PLC Board for amendments to the We have further expatiated each of the three dimensions of sustainability – overal sustainability strategy of the these material issues within this report people, planet and profit. Group. Looking to the future, we intend to - Oando Sustainability Report 2013 - Oando Sustainability Report 2013 Looking to the Future Looking to the Future 06 07 About this report Stakeholder engagement Creating value through Creating value through Targets and data Feedback About this report inspirational leadership strategic partnerships Our approach Our people are an important company asset and stakeholder group. We continually review how best to ensure their wellness, reward them for loyalty and service, and compensate them for work done well. Economic Social Environmental Investing in our people Protecting the environment ICt isr eesasteinntiagl t hvaat wlue ecreate value for our Our people are an important company asset Many of our activities even when managed in various stakeholders and in particular for and stakeholder group. We aim to continually a responsible manner can have an adverse investors, who are entitled to a good return on ensure their wellness, reward them for their impact on the environment. We continually their investment. We also balance the loyalty and service, and compensate them for seek new ways by which we can continue to competing priorities of other key stakeholders work done well. We will not ignore the need to service the energy needs of modern society to ensure that all interests are catered for. focus on appropriate training and while protecting the environment that these professional development. Our succession resources are derived from. (pages 40 - 47) (pages 48 - 55) planning strategy should enhance sustainable organizational development and Building partnerships business continuity. Water and air quality We aim to further develop strong relationships (pages 56 - 59) Water is a natural resource and an important and partnerships with communities, one for our business. As a regulated business governments, our business peers and other we are subject to standards in relation to stakeholders so that we can understand our Workforce wellness water conservation and air pollution limits. respective needs better and identify, develop Healthy employees tend to be happier and Therefore we need to maintain efficient and deploy mutually beneficial solutions. We more productive employees. Therefore a safe systems that reduce any negative impact of also have a leadership role to play in and healthy workplace is a good investment our operations on these precious resources. for the long term growth of the Company. promoting positive developments within the (pages 52 - 53) industry. Workforce wellness programmes are an (pages 70 - 75) essential aspect of our workforce development strategy. Waste management (pages 62 - 63) Our operations generate a significant amount TAechcnoelosgsy ctaon itmepcrohven poerlfoorgmyance and of waste. We need to effectively manage this efficiency, minimise the environmental impact to prevent harm to the environment, and to of our activities, and provide new business Building our communities the health of people and animals. We opportunities. Therefore we continuously seek Our