Transcript Slide 1

CSR in the Oil and Gas Industry:
an overview of emerging trends
and industry activities
Adel Chaouch
Vice-Chair
IPIECA Social Responsibility Working Group
Challenges to Sustainable Development
• Oil and gas industry operates globally
• Complex and diverse environmental and social
issues
• Weak governance in many areas leads to civil
society expectations that companies are
development actors
• So... Companies need to ensure good policy &
practice
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Working together through IPIECA
• Founded in 1974
• Non-profit organisation representing oil and
gas industry on key global environmental and
social issues
• Membership of 30 companies, 12 associations
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Working together through IPIECA
• Working group are
forums for members to:
– Share information and
enhance understanding
of issues
– Address challenges and
implications for the
industry
– Engage with
stakeholders
– Coordinate on joint
actions
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Addressing CSR trends
• Three emerging trends in CSR for the
industry
Developing strong partnerships
Contributing to sustainable social investment
Defining roles and responsibilities for human rights
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1. Partnerships
• Increase in multi-stakeholder
initiatives over last decade
• Partnerships are essential to
achieving sustainable
development objectives
• Benefits from combined efforts in
partnership:
–
–
–
–
Higher quality project outcomes
Long-term sustainability
Improved stakeholder engagement
Local economic development of host
communities
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1. Study – Partnership for Clean Fuels & Vehicles
• World Bank, UNEP, US E.P.A., IPIECA & various
NGOs
• To phase-out the use of leaded gasoline in
sub-Saharan Africa and then globally
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2. Social Investment
• Industry becoming
important stakeholder for
technology cooperation &
capacity building
• Yet often SI programmes
do not work
– unrealistic expectations,
dependency, conflict
• IPIECA SI Guide shows
how to reassess SI,
manage expectations,
build long-term capacity
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2. Study – Evolution of SI for one company
• Initiated some “quick impact” programmes
• Conducted a thorough needs assessment in
communities through an NGO
• Started infrastructure project based on needs
– involving government & communities
• Once trust established and partners commit
resources, then capacity & communication is
increased
• Company can then decrease involvement
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3. Human Rights
• Primary responsibility to
protect human rights with
governments
• Increasingly companies
have role to promote HR
• Three divisions of
responsibility and
influence:
–
(a) Direct responsibility,
(b) Shared responsibility,
(c) Indirect influence
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3. Study – Voluntary Principles on Security & HR
• Shared responsibility by three key pillars in
improving security & human rights practice
GOVERNMENT
NGO
INDUSTRY
• Helps to fill gap in international legal
framework and encourage joint action
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Conclusion
1. Relationships are complicated
2. Industry has limited expertise in sustainable
development – partnership is critical
3. A long-term approach is needed
4. CSR field is on a learning curve, with IPIECA
helping members to share and improve
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www.ipieca.org
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