Sustainable Development Awareness Session

By Dr. Yasmeen Al Lawati

PDO – SD Awareness

ObjectivesObjectives

1. What is Sustainable Development? 2. Why does it matter?3. Why are we committed to contributing?4. What does it mean in practice & How are

we embedding this commitment into our operations?

PDO – SD Awareness

Global issues - Population Growth

Fact World population is expected to

double by 2050 Currently more than 80% of world’s

population live in developing countries

World’s economic output has more than doubled in the past 25 years

Challenge Enabling economic growth with

minimalenvironmental and related impacts.

Implications for business Adopt cleaner and affordable

technologies Develop renewable and recyclable

goods

PDO – SD Awareness

36 would lack basic political rights and civil liberties

12 would produce half the income

44 would not have access to proper

sanitation, electricity or

modern cooking fuels

20 would suffer from malnutrition

23 over the age of 15 would be

unable to read or write

2 would have a further college

education

20 would not have access to clean water

Distribution of Opportunity

100100PEOPLEPEOPLE

100100PEOPLEPEOPLE

PDO – SD Awareness

Consumption Levels

If the entire world lived on a footprint equivalent to the average person in the US it would take five planet Earths to support the present world population.

USA -10 acres to supply the average person’s basic needs.

The Netherlands - 5 acres

Ethiopia -1 acre

PDO – SD Awareness

Sustainable Development Barometer

2. When you hear the term does it make you….

Blink in incomprehensio

n?

Squirm in discomfo

rt

Sit up and listen

Stand ready for action

3. Why have companies like Shell committed to contribute to SD?

‘Have lost their minds, their

nerve or both’

‘Spin to help their

reputations’

‘To use these values to create business value for

their shareholders’

‘To live by their core corporate

values’

1. Can you define ‘Sustainable Development’? (so your neighbours understand)

‘Sustainable what?’

‘Heard of it but not really sure’

‘Think I more or less get the concept, but not in

words fit for the neighbours’

‘Sure it is….’

PDO – SD Awareness

What is Sustainable Development?What is Sustainable Development?

“ The development that meets the needs of the present generation without compromising the ability

of future generations to meet their own needs ”

PDO – SD Awareness

Generate Profitability Benefit communities

Protect the environment Manage

resources efficiently

Respect & safeguard people

Work with stakeholders

SD

Components of SD-ConventionalComponents of SD-Conventional

People

Planet Profit

PDO – SD Awareness

The Sustainable Development Lens

PDO – SD Awareness

To explore and develop oil & gas in a sustainable manner to the benefit of all stakeholders

PDO MissionPDO Mission

We

Incorporate SD in strategies, plans and decision-making processes

Contribute to SD in partnership with the Government’s authorities

Involve our employees and increase SD awareness among our staff and contractors

Report externally on our SD performance

PDO – SD Awareness

As trust diminishes, the demand for partnering with stakeholders, for open reporting and

external assurance increases

Move to an ‘engage me’ world

High

Low

Low High

“Trust me”

Trust

Transparency

Trend

“Tell me”

“Show me”

“Engage me”

“Help me understan

d”

PDO – SD Awareness

Society

Maps are representational only- not comprehensive

Government Employees

CustomersCompany

Share-holders

NGOs

Society

Government Employees

Share-holders

NGOs

Company

OLD NEW

Customers

Stakeholder Maps

PDO – SD Awareness

IS NOT ISDeciding, announcing, defending

Developing options, discussing, deciding

Dealing only in facts Taking account of feelings, values and perceptions

Assuming win/lose outcomes Searching for win/win results & ways to add value for all parties

A one-off exercise at start/end of project

An iterative process

Secretive, information on a `need to know’ basis

Open and transparent

Public relations Public involvement

Stakeholder Engagement

PDO – SD Awareness

Time

Low

High

Risk

Business reality

PublicExpectation

Managing Expectations

Expectations

PDO – SD Awareness

Is… enshrined in our Business

Principles a potential source of

value and competitive edge

an integral part of our approach to business – a way of thinking

enables WIN-WIN solutions which generate value for both company and society

open dialogue with stakeholders

making better decisions by better understanding stakeholders’ needs

Is not… a new initiative a cost or burden to our

business an “add-on “ a trade off between

economic and environmental/social issues

just a PR exercise handing over decision-

making responsibility to stakeholders

Sustainable Development …

PDO – SD Awareness

Health & Safety Programmes

Agricultural projects - Rahab Farms

Education and training

Omanisation (PDO currently at 80%)

Potable water supply to communities

Business and HSE training for LCCs

SD in Action …. PeopleSD in Action …. People

PDO – SD Awareness

SD in Action .…. Planet ISO-14001 accreditation

90% use of associated gas; Continuous Flaring out by 2008

White Oryx Reserve (UNESCO World Heritage Site)

Phasing out of CFC / Halons ahead of Montreal Protocol

“Greening the Desert” - Reed Beds

1st & 2nd generation Solar Car developed at SQU

PDO – SD Awareness

E-business: savings

On-line bidding

Infrastructure improvement projects: roads, electricity, etc.

Local Community Contractors program (LCC)

EOR projects

Operating Model Review 2004 & beyond.

SD in SD in Action …. Profit …. Profit

PDO – SD Awareness

Balance long term & short term

Integration Profits, Planet & People

Engagement with stakeholders

&

Building Partnership

Sustainable Development is...Sustainable Development is...

PDO – SD Awareness

Integrated Impact Assessment (IIA) Integrated Impact Assessment (IIA) Guidelines – GU 447Guidelines – GU 447

Assessing environmental, social and health potential impacts

IIA Process linked to VAR and Project Cycle

Currently, it is standardised for all projects

Examples are Gas projects, EOR projects

PDO – SD Awareness

Why IIA Guideline?

Measures to mitigate projects impacts

License to operate

Means to reduce the overall business cost

Complimenting the legislative role of government

Means to contribute to SD of Oil & Gas in Oman

Meets international standards

PDO – SD Awareness

Initial Impact Evaluation Report

Preliminary Impact Assessment Report

Final IIA Report/ SD/SP Program Report

Impact Management & Monitoring Plan IMMP/SD/SP

Initial Screening Checklist (IIIC)

VAR 1VAR 1

VAR 2VAR 2

VAR 3VAR 3

VAR 4VAR 4

VAR 5VAR 5

IIA Process Flowchart/Deliverables

PDO – SD Awareness

Working Example

SD/Social Performance Project

PDO – SD Awareness

48” Gas Loop Line

Construction of a 48” pipeline parallel to the existing pipeline starting Saih Nihayda to Al-Kamil; total distance of 264 km

The pipeline crosses five Wilayats; Adam, Mudhaibi, Al-Qabil, Bidiyah and Al-Kamil. (Excluding Adam, all Wilayats are outside PDO concession area)

12 communities located within a 1-2 km from the RoW; approximately 500 people; livestock camps in Wadis throughout the project area

No basic infrastructure and/or services (education, health, community resources) in the communities

PDO – SD Awareness

Opportunity Realisation Framework

The identification, selection and implementation process for strategic social investment (SSI) projects follows PDO’s opportunity realisation framework

Select Define Execute Operate(rank)

(Develop business

plans)

(Implementation)

Identify & Assess

Op

po

rtun

ities

(Baseline data collection)

(Project Complete)

PDO – SD Awareness

Select Phase: 1st Stage Ranking

Project Ranking Criteria:

1. Project serves wide population

2. Project self-sustaining

3. Project does not create long-term dependency; clear PDO exit strategy

The ranking exercise follows PDO Guideline “Social Performance Project Evaluation Guide” (GU – 468)

PDO – SD Awareness

Select Phase: Ranking Exercise Results

27 potential social project proposals ranked

4 Quick wins; 7 proceeded to 2nd stage ranking;

(3 potential projects selected);

3 for later implementation; 11 rejected; and2 not ranked

Focus Areas: Health, Quality of Life, Sustainable Livelihoods, Local Capacity Building

PDO – SD Awareness

Basic Infrastructure Support–al Basic Infrastructure Support–al QabilQabil

Objective: Support basic infrastructure requirements to improve living standards of households in project-effected communities

Description: One-time monetary donation to the Wali to (partially) fund an infrastructure project for identified households

Beneficiaries: Households in Al Khorais, Al Sarhat, Hailat Raei Shajarah – Al Qabil

Community Benefits: Improved quality of life

Business Benefits: Social licence to operate, enhanced reputation, improved social performance, work in partnership with provincial governments and alignment with government development plans

Exit Date: Q 2 2005

Cost: $ 260 000

PDO – SD Awareness

MDC Steering Committee

Develop strategy & define what is required

Social Project selection Select, define &

rank the SP Projects

Assets/Project TeamsExecute actions

PDO + Gov. NetworkAim to enhance trust

FeedbackResults

Communicate required Actions / activities

Communicate strategyAnd requirements

Assess Assets / Project Teams

PDO + SD Peers Network(Shell EP, OLNG, SQU,

OPAL)Learn on best practices

Work together on commonprojects

Benchmarking

SD Structure in PDOSD Structure in PDO

PDO – SD Awareness

SD General Awareness among Staff (SD on Paper)

SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head)

SD is considered in some PDO business

(Weave / Head to Heart)

Full SD integration into all aspects

of the PDO business (Infuse / SD in the Heart)

4.03.93.83.73.63.53.43.33.23.13.02.92.82.72.62.52.42.32.22.12.01.9

SAQ

2001/2002

Lead

ing In

dicat

or: S

AQ

2003

SD Self Assessment WorkshopSD Self Assessment Workshop

SD General Awareness among Staff (SD on Paper)

SD perceived as additional and sometimes requiring duplicating efforts (Bolt On / SD in the Head)

SD is considered in some PDO business

(Weave / Head to Heart)

Full SD integration into all aspects

of the PDO business (Infuse / SD in the Heart)

4.03.93.83.73.63.53.43.33.23.13.02.92.82.72.62.52.42.32.22.12.01.9

SAQ

2001/2002

Lead

ing In

dicat

or: S

AQ

2006

2003

2004

PDO – SD Awareness

1. Social GIS for the concession area2. SD Awareness & Knowledge Campaign

across PDO - Ongoing3. A common SD pot for all SP projects4. Develop Framework to extend IIAs from

Projects to clusters5. SD workshop involving key project staff

SD team 2005 PlanSD team 2005 Plan

PDO – SD Awareness

NeedNeed moremore info…info…

Visit PDO SD Web Site

Contact MSE6 Team

OR

PDO – SD Awareness

…………..& the journey continues..& the journey continues