BP 2013 Annual Report Download - page 50

BP Annual Report and Form 20-F 201346
We seek to design and locate our equipment and manage our work
patterns in ways that reduce potential impacts to communities such as
increased traffic, noise, dust and light. We also listen to suggestions or
complaints from nearby local communities and try to address their
concerns.
More information about our approach to unconventional gas and hydraulic
fracturing may be found at bp.com/unconventionalgas.
Canada’s oil sands
Oil sands in Canada are the third-largest proven crude oil reserves in the
world, after Saudi Arabia and Venezuela. About half of the world’s total oil
reserves that are open to private sector investment are contained in
Canada’s oil sands. BP is involved in three oil sands lease areas, all of
which are located in the province of Alberta. We expect the Sunrise
Energy Project, operated by Husky Energy, to be the first onstream with
production expected to begin in late 2014. Engineering and appraisal
activities are under way to design and plan the construction of the first
phase of Pike, which is operated by Devon Energy. Terre de Grace, which
is BP-operated, is currently under appraisal for development.
Our decision to invest in Canadian oil sands projects takes into
consideration GHG emissions, impacts on land, water use, local
communities and commercial viability. In the case of joint arrangements in
which we are not the operator, we monitor both the progress of these
projects and the mitigation of risk. In the Terre de Grace project where we
are the operator, we are responsible for managing these potential impacts
and the mitigation of risk.
More information on BP’s investments in Canada’s oil sands can be found
at bp.com/oilsands.
Human rights
BP’s human rights policy, published in 2013, outlines our commitment
to respect internationally-recognized human rights, as set out in the
International Bill of Human Rights and the International Labour
Organization’s Declaration on Fundamental Principles and Rights at
Work. The policy applies to all employees and officers in BP wholly
owned entities and in joint arrangements to the extent possible and
reasonable given BP’s level of participation.
The United Nations Guiding Principles on Business and Human Rights
outline specific responsibilities for businesses in relation to human rights.
We are committed to working towards aligning with the Guiding Principles
using a risk-based approach. In 2013 our actions included:
• Human rights workshops for senior leaders in Indonesia and the
Middle East, with plans to roll these out in other high-priority regions.
• Inclusion of human rights in our impact assessment for the LNG
expansion project in Tangguh, Indonesia.
• Collaboration with industry peers on the development of good practice
guidance for integrating human rights into environmental and social
impact assessments.
• Participation in the work of oil and gas industry organization IPIECA’s
taskforce on developing shared industry approaches to managing human
rights risks in the supply chain.
We plan to monitor the effectiveness of these actions. More information
about our approach to human rights may be found at bp.com/humanrights.
Business ethics
Bribery and corruption are significant risks in the oil and gas industry.
Our code of conduct requires that our employees or others working on
behalf of BP do not engage in bribery or corruption in any form, whether
in the public or private sector. We operate a group-wide anti-bribery and
corruption standard, which applies to all BP employees and contractor
staff. The standard requires annual bribery and corruption risk
assessments; risk-based due diligence on all parties with whom BP does
business; appropriate anti-bribery and corruption clauses in contracts; and
the training of personnel in anti-bribery and corruption measures. Our
processes are designed to enable us to choose suppliers carefully on
merit, avoiding conflicts of interest and inappropriate gifts and
entertainment.
We are working to respond effectively to the standards arising from
the UK Bribery Act as well as other anti-corruption legislation such as
the Foreign Corrupt Practices Act and certain regulations promulgated
under the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank) in the US.
Financial transparency
As a member of the Extractive Industries Transparency Initiative (EITI),
we work with governments, non-governmental organizations and
international agencies to improve transparency and disclosure of
payments to governments. BP is supporting several countries that are
working towards becoming EITI compliant.
In countries that have achieved EITI compliance, including Azerbaijan and
Norway, BP submits an annual report on payments to their governments.
We have taken part in consultations in relation to new or proposed
revenue transparency reporting requirements in the US and EU for
companies in the extractive industries. We are awaiting the publication
of the revised rules of the Dodd-Frank legislation from the SEC and are
preparing to comply with the disclosure requirements.
We are contributing to the consultation process initiated by the UK
government in preparation for the adoption of the EU accounting directive
into UK law.
Enterprise and community development
In a number of BP locations, we run programmes to help build the skills of
businesses and to develop the local supply chain. For example, we have
helped some local companies reach the standards needed to supply BP
and other organizations through training and sharing of our standards in
areas such as health and safety.
BP’s social investments, the contributions we make to social and
community programmes in locations where we operate, support
development activities that aim for a meaningful and sustainable impact.
We look for social investment opportunities that are relevant to local
needs, aligned with BP’s business, and offer partnerships with local
organizations.
In 2013, we contributed $78.8 million in social investment. More
information about our social contribution can be found at
bp.com/society.
Environmental monitoring at our Terre de Grace oil sands lease area in
Northern Alberta, Canada.