Our Operations Technology & Innovation Sustainability Careers Investor Centre News & Media About Statoil Home / Sustainability / Sustainability approach / Governance & risk SUSTAINABILITY Sustainability approach Climate Change Resource efficiency Local environmental impact Transparency Local value creation Human rights People Governance & risk Stakeholder engagement Partners & suppliers Recognition & awards Impact assessments Safety at Statoil Sustainability reporting The Statoil CEO HSE award Sustainability FAQs — your questions answered Governance & risk Risk management forms an integral part of our management approach. We aim to minimise harmful impacts and optimise the benefits and opportunities generated by our activities throughout their life cycle. A multi-disciplinary approach We take a holistic and multi-disciplinary approach to risk management, drawing on tools and expertise from our environmental, social responsibility, and ethics and anti-corruption disciplines to respond to the diverse challenges and opportunities we encounter in the course of undertaking our activities. We have a number of processes and tools in place to identify and manage environmental, social and integrity risks throughout the life cycle of our activities. Safety, security and sustainability in risk management Risk management is an iterative process that informs our Safety, Security and Sustainability management. As part of the decision-making process, relevant safety, security and sustainability risk factors are identified and assessed, and relevant measures to control risks are implemented. We apply the precautionary principle in our assessment of safety, security and sustainability risks and associated impacts. Our policies and guidelines require us to identify and document HSE risks for all activities, to establish and document risk tolerance criteria at the relevant level of activity, and to assess the identified HSE risk factors against the established tolerance criteria. Necessary risk-reducing measures must be implemented in order to meet the established criteria, and further to reduce the risk of harm so that it is as low as reasonably practicable (ALARP). Identified safety, security and sustainability risk factors should be included in the basis for the selection and planning of supervisory activities. Impact assessments are required for all relevant projects to assess environmental, social, human rights and health impacts, and to define measures to reduce or avoid negative impacts and enhance benefits. We use quantitative and qualitative risk analyses actively to obtain a balanced picture of probability and consequences of incidents, to identify and assess critical HSE functions and defects, and as a basis for design and improvements. Country risk assessment The purpose of country risk assessments is to develop robust knowledge and an understanding of local conditions and business culture as early in the business process as possible. This enables Statoil to reduce our country risk exposure through early identification, prioritisation and management of significant risk elements that could have a negative impact on a given business opportunity. Risk assessments are carried out and updated as part of the basis for making decisions at each decision gate and during the operating and abandonment phases of projects in medium- and high-risk countries. The evaluation of country risk is an integral part of the decision-making process. It is subject to specific requirements and active follow-up from involved management. The risk identification process makes use of country risk workshops at which a multi-disciplinary group from relevant parts of the organisation can brainstorm, filter and prioritise risk elements in relation to 13 pre-defined risk areas. Any potential reputational impacts for the company are also considered. In addition to this qualitative analysis, projects in medium-to-high-risk countries are assessed for country risk effects on their net present value. Using a model developed using IHS Global Insight, endeavours are made to estimate which risks have the potentially largest effect on the cash flow of a project and thereby to enable management of these risks. Early-phase risk assessment Early identification, understanding and management of Safety, Security, social, environmental human rights, and integrity risks is considered essential if we are to achieve sustainable development as we diversify our portfolio and grow internationally. Statoil has implemented a web-based early-phase risk assessment (EPRA) tool for evaluating new business opportunities, to ensure that Safety, Security, social, environmental and human rights and integrity risks are considered at an early stage. The tool also includes a module called the Brownfield Risk Assessment Tool (BRAT) for assessing the condition of existing activities. The EPRA process is a stepwise process that includes establishing the context, identifying sources of risks (both downside and upside) and their potential impacts, analysing and evaluating these, and then devising the most effective means of control. The results are shown in risk diagrams that are used to communicate results to the management at project, asset and corporate levels. Risks that end up in the red area of the risk matrix are regarded as challenging, requiring high management attention and the identification and implementation of effective control measures. The process is intended to promote clearly defined and transparent decision making, as well as shared understanding and ownership of risk by project management and the asset owner - which is essential for effective follow-up and monitoring. Integrated impact management An integrated impact management process that addresses the environmental, social and human rights impacts of our activities and provides for engagement with stakeholders is one of the company's main tools for ensuring sustainable performance. This process helps us to identify the source and nature of potentially adverse environmental, social or human rights impacts on our stakeholders. On that basis, we develop plans to manage opportunities and potential adverse impacts. Statoil's requirements for impact management for Statoil-operated activities are based on both national requirements in the countries we operate and international guidance as set out in International Standards Organisation (ISO) Standard 14001 for environmental management systems, the Equator Principles and the IFC's Performance Standards on Environmental and Social Sustainability. The impact management process forms an integral component of the overall risk management process in Statoil. The disclosure of information and an open dialogue with potentially affected communities and other stakeholders are key elements in the impact management process. This is described in the Stakeholder engagement article. In joint ventures and partner-operated projects, we also endeavour to promote Statoil's principles for integrated impact management as a tool for achieving sustainable project performance. Human rights due diligence Human rights due diligence and risk management are integrated in all the company's general systems for assessing and managing social risks. In countries or contexts in which human rights risks are particularly significant, dedicated human rights risk assessments may be carried out when needed. Human rights is addressed as a part of our standard integrity due diligence (IDD) research of third parties with whom we may enter into a business relationship. Our standard contract requires adherence to national laws and regulations, and, where necessary, all efforts are made to include specific provisions relating to human rights in contracts with partners and suppliers. Published 2014-03-09, 20:58 CET. Updated 2014-03-21, 12:12 CET. SHARE You can read more about our sustainability performance in our annual sustainability report, here. Safety, Sustainability and Ethics committee The Safety, Sustainability and Ethics Committee is established to support Statoil’s commitment. Read more here Statoil.com GoodIdeas Innovate Heroes of tomorrow Statoil websites Norsk Terms and conditions Privacy policy Site info Feedback Sitemap Contact © Statoil 2014