Creating Shared Value
We address the social or community aspects related to our operations and projects at the business unit (BU) level.
Governance and Strategy
We have a comprehensive governance framework that extends from the board of directors, through executive and senior management to the working levels in each BU. Read more about our sustainable development governance structure.
Risk and Impact Assessment
Social risks at the community level could result from potential project, operational and cumulative impacts to community safety, human rights, infrastructure, services, land use, environmental quality, cultural heritage, managing expectations for local business opportunities, and employment. Risks could impact our business through project delays, business interruption, policy or regulatory costs, reputational damage, or increased cost of capital. Social risks for our asset portfolio are related to:
- Community opposition based on potential or perceived social and/or environmental impacts, including cumulative impacts.
- Community expectations of economic benefits, such as local hiring and local content.
- Public policy that restricts access to, or development of, natural gas and oil resources.
- Negative public sentiment.
By understanding the social, economic, political and environmental factors affecting stakeholders, we can identify and monitor emerging trends, manage potential impacts and reputational risks associated with our operations and add value to our communities.
Our stakeholder identification process is a key component of social risk assessment. Each business unit is responsible for identifying stakeholders to understand their perspectives and concerns. We consider our stakeholder relationships and priorities to identify opportunities for collaboration and potential points of conflict. From this we develop an engagement plan to address concerns and maintain our focus on developing mutually beneficial relationships. By having open dialogue, we are able to identify and address potential impacts associated with our operations. This is done through our integrated sustainable development (SD) risk management process where existing and planned exploration and production, and major projects are examined against the physical, social and political settings of our operations. Social assessments consider:
- Impacts to communities, including human rights, rights of Indigenous Peoples, labor rights, security, public health, political and economic issues.
- Stakeholder priorities.
- Stakeholder opposition to company activities.
- Risks and impacts related to supplier and contractor activities.
- Cumulative effects of company and/or industry activities.
To support our BUs in operationalizing our Stakeholder Engagement Principles, we provide Social Performance Guidance with recommended internal processes and external engagement to understand and address stakeholder priorities. Based on this guidance, each BU manages its own social risks, priorities and regulatory requirements, enabling tailored, region-specific business goals to address unique challenges and opportunities.
Stakeholder Engagement Principles | Social Performance Guidance |
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Risk and Mitigation Actions
In 2022, five social risks related to potential project delay and business interruption were identified and ranked as significant by three business units. They have developed mitigations to address these risks.
We continued with our Social and Stakeholder Engagement issues working group (IWG) quarterly meetings in 2022. The IWG provides a platform for knowledge sharing on best practices, tracks emerging topics and monitors the progress of the different BUs regarding their engagement with communities and other key stakeholders.