Annual Report 2009

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Sivu: 28

CORPORATE RESPONSIBILITY The procedures There are both corporate and operational procedures in place. Corporate procedures aim to ensure that operations are conducted in a safe and respectful manner. In 2009, in order to clarify corporate HSE expectations on its operations, Lundin Petroleum issued HSE Management System Requirements (HSE MSR), which provide guidance on what are the specific requirements on operations under the Green Book. The HSE MSR Self-Assessment Form was also developed for operations to complete in 2009 in order to ascertain their level of compliance with the HSE MSR. In 2010, the HSE MSR Self-Assessment shall be used by corporate management to audit HSE practice at its operated assets. Lundin Petroleum’s corporate HSE Reporting Requirements were also modified to align with the Occupational Safety and Health Administration standards (OSHA 1904). With both leading and lagging indicators, the new HSE reports will eventually enable the Company to carry out tracking and trend analysis of HSE performance group-wide. Corporate procedures are also in place to ensure business continuity in the event of a problem either at operations or corporate. Lundin Petroleum revised its emergency response system in 2009, with the view of rendering communications between corporate and operations more effective during emergency situations. Operational procedures span the whole spectrum of the activities, including studies and assessments (environmental, security, risks, etc.) to permit-to-work systems, oil spill and emergency response preparedness as well as HSE and business continuity plans. All procedures are tested and verified on an ongoing basis, through drills as well as internal, external and/or regulatory audits. The HSE Committee Lundin Petroleum has also created a corporate HSE Committee to further streamline HSE into its business processes with the Senior Vice President Operations, the Vice President Corporate Responsibility, the Group Drilling Manager as well as the Group Human Resources Manager. The purpose of the Committee is to assess HSE implications of (planned) operations, as well as review KPIs on an ongoing basis. While the Committee is scheduled to meet on a bi-monthly basis, it can do so on an ad hoc basis whenever an issue warrants it. The HSE Management Meeting In the third quarter of 2009, an HSE quarterly Management Meeting was initiated, chaired by the Chief Operating Officer, the meeting convenes senior management and members of the HSE Committee to discuss progress against the HSE Plan, review HSE performance in the Group and HSE implications of planned operational activities. Corporate Responsibility performance The test as to the effectiveness of the Corporate Responsibility framework ultimately resides in the Company’s performance, the problems it faces group-wide and how it manages them. HSE Key Performance Indicators (KPIs) The systematic and consistent tracking and reporting of Health, Safety and Environmental KPIs allows the Company to manage HSE issues as well as to highlight areas that require concerted attention. As part of its review of its HSE Management System in 2009, Lundin Petroleum has introduced new monthly reporting requirements. The purpose of these requirements is to standardise the information that is being tracked and reported from its operated assets, and, more importantly, to have a more thorough understanding of its group-wide HSE performance. Since 2004, Lundin Petroleum has been tracking the number of Fatalities, Lost Time Incidents (LTI), and Oil Spills (over 1 barrel) in its operated assets. It introduced reporting of LTI Rates (LTIR, per 200,000 man hours) in 2005. Indicators introduced in 2009 include Restricted Work Incidents (RWI) and Medical Treatment Incidents (MTIs). These two indicators enable the Company to track its Total Recordable Incident Rate (TRIR). Other indicators which are reported since 2009 are chemical spills, which, together with oil spills, enable the Company to assess its impact on the environment, as well as hydrocarbon The HSE Network A formal HSE Network has been created bringing together HSE managers and/or General Managers of operations worldwide. A dedicated web forum has been set up where all the CR framework documents discussed above have been included together with operations’ specific documentation. A group-wide HSE Teleconference is held on a bi-monthly basis to review HSE Key Performance Indicators (KPIs) and other relevant HSE issues. GLOBAL COMPACT Following a resolution of its Board of Directors, Lundin Petroleum shall join the United Nations Global Compact (UNGC) in the spring of 2010. The UNGC was launched in 2000 at the initiative of the then Secretary General of the United Nations, Kofi Annan; it has become the world’s largest corporate citizenship and sustainability initiative with over six thousand participants from the private and public sectors, and civil society. It is a voluntary initiative that aims to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption. On joining the UNGC, Lundin Petroleum will commit to: » Incorporate the principles as an integral part of business strategy, day-to-day operations and organizational culture » Incorporate the principles in the decision making process of the Board of Directors » Contribute to broad development objectives through partnerships » Publish a Communication on Progress (COP) » Advance the Global Compact and responsible business practices through active outreach to stakeholders and the public at large. For further information on the UNGC, please refer to www.unglobalcompact.org. 26 Lundin Petroleum ANNUAL REPORT 2009

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