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 ambi- tions for 2017. Aker’s 2016 CR report addresses each of these areas. The industrial portfolio com- panies, in which Aker has ownership interests, all publish their own CR reports. Aker is an investment company with industrial investments fo- cused on the oil and gas sector, maritime assets and marine bi- otechnology. 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 environ- mental 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 de- velopment 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, in- dustry, 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 environ- mental 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