Annual Report 2010

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CORPORATE RESPONSIBILITY SUSTAINABLE INVESTMENTS Lundin Petroleum’s mission is to ﬁnd and produce oil and gas, a valuable source of energy required for global economic development, in an eﬃcient and responsible way. It fulﬁls this mission by having in place the CR framework and structure described above, providing staﬀ and contractors with the necessary support and guidance in terms of training, procedures, equipment and tools, etc. to carry out activities competently and with minimal disturbance to people and the environment. Lundin Petroleum has set the additional goal of having a positive impact on people and the environment by initiating or participating in projects which promote social welfare, environmental protection and good governance. After joining the UN Global Compact in 2010, Lundin Petroleum issued new Guidelines on Sustainable Investments to encourage and assist country management within the Group to reﬂect upon the types of activities they are engaged in and determine ways in which they could positively impact the people and the environment in their areas of operations. The Guidelines were presented within the Group in an HSE Teleconference and discussed with GMs and/or HSE oﬃcers of each country individually. There are two mechanisms for contributions under the Guidelines: community development projects and corporate donations. Community development projects are elaborated as part of Lundin Petroleum’s and/or operating partners’ licence commitments in economically challenged areas; they are part and parcel of the operations and are done on a scale that reﬂects the extent and nature of the operational activities. Corporate donations take place in areas where Lundin Petroleum has limited interface with local communities, either because the activities are oﬀshore or because they are partner-operated. Sustainable investments have taken place in ﬁelds which both the United Nations’ Global Compact and the Millennium Development Goals promote namely social welfare, environment and governance. Below is a sample of the projects which Lundin Petroleum funded in 2010. Social Welfare Projects Poverty is a social plague which aﬀects children in a disproportionate way. Since 2006, Lundin Petroleum has been a partner of SOS Children’s Village, Sweden and has supported a number of children’s villages in operated (Indonesia, Tunisia) and non-operated (Vietnam, Cambodia) areas. This support has continued in 2010 through direct contributions from Indonesian and Tunisian oﬃces to their respective Villages and a corporate contribution via Sweden to Vietnam, a non-operated area. Improving access to basic health is another goal which Lundin Petroleum promotes. In 2010, it organised a fundraiser among its staﬀ and matched raised amounts to fund health projects carried out by Partners in Health further to the earthquake that took place in Haiti on January 12, 2010. In Indonesia, as part of its onshore 472 km 2D seismic campaign, the Company funded a medical campaign for children carried out by the Hope Foundation. Lundin Petroleum continued to support the Southern Sudan’s Older People’s Organization’s (SSOPO) Project of Vocational Training in Food Processing, which helps women from the Juba area to acquire vocational skills. The Company decided to maintain its support to this project even though it no longer has operational interests in Sudan, as its contribution enables SSOPO to get co-funding from other organisations. Environment Projects Preservation of the environment is included in Lundin Petroleum’s day-to-day operations and was also the subject of sustainable investments in 2010. The Company sponsored an environmental protection initiative in the Volga Delta area whereby volunteers collected rubbish from river banks and camping sites, and sensitised local residents and tourists to the principles of preservation of the environment and eco-tourism. The initiative was recognised by the Governor of Astrakhan as having great value to the area and was reported in multiple local media. Biodiversity was another aspect covered by Lundin Petroleum’s sustainable investments. The Company supported a research project in relation to the artiﬁcial breeding of sturgeons, whose population in the Volga Delta area is decreasing due to poaching activities. It also facilitated the nesting of Siberian cranes, a critically threatened species according to the International Union for Conservation of Nature (IUCN). In France, the Company sponsored posters identifying rare fauna and ﬂora species in the swamps areas and the need to preserve them. Climate Change remains an important consideration for Lundin Petroleum, which tracks green house gas emissions in the course of its operations. In 2010 it participated again in the Carbon Disclosure Project and for the second consecutive year featured in the Nordic 200 Carbon Disclosure Leadership Index (CDLI). The Company ranked ﬁrst among Nordic oil and gas companies and third among all Swedish companies rated by the Carbon Disclosure Project. Lundin Petroleum was commended for its approach to corporate governance in respect of climate change disclosure practice, its good internal data management and understanding of climate change issues. Governance Projects Lundin Petroleum addressed the issue of governance both internally and externally. Internally the Company prepared a presentation on the UNGC’s two ﬁrst principles on human rights (i.e. support and respect the protection of human rights and avoid complicity in human rights abuses). The presentation was made to senior corporate management at the HSE Quarterly Meeting in 2010 and at the HSE Teleconference with Group General and HSE Managers in Q1 2011. A copy of the presentation as well as Lundin Petroleum’s Human Rights Primer are posted on Lundin Petroleum’s internal HSE web forum. In addition, Lundin Petroleum has sponsored research and a workshop at the Institute of Graduate Studies, Geneva, Switzerland on “Global and local governance in the energy sector”. The workshop, held over two days in February 2010, gathered academics and representatives from the non-governmental and private sectors, who presented and discussed the issue of governance from a macro societal level to a micro company level. Every participant, including Lundin Petroleum, contributed an article which will be published by the Journal of Global Governance in the second half of 2011. 40 Lundin Petroleum ANNUAL REPORT 2010

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