Annual Report 2011

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CORPORATE RESPONSIBILITY Ten years of Corporate Responsibility at Lundin Petroleum In its first annual report in 2001, Lundin Petroleum defined Corporate Responsibility (CR) as “more than words, it is an attitude and a commitment translated into action”. This statement remains true today; what is critical for Lundin Petroleum is that throughout the Group, at all echelons of the organisation, from the Board of Directors to staff on the drill floor, CR is integrated in decisions and work execution. Lundin Petroleum fully endorses the definition of Social Responsibility developed by the International Organisation for Standardisation in ISO 26000: “the responsibility of an organisation for the impact of its decision and activities on society and the environment, through transparent and ethical behaviour that contributes to sustainable development, takes into account the expectations of stakeholders, complies with applicable law and is consistent with international norms of behaviour and is integrated throughout the organisation and practised in its relationships”. In practice it means seeking to achieve social, environmental and economic benefits simultaneously. As Lundin Petroleum has evolved as a company, so has its CR approach. In the early days, CR meant ensuring that the Company remained true to its values and principles while working in challenging socio-political environments. The development of a Code of Conduct, stakeholder engagement and local community development projects were the key CR achievements at the time. As the Company’s geographical focus shifted to Europe and South East Asia, Lundin Petroleum further elaborated policies, processes and procedures to preserve the health and safety of its staff and contractors and to protect the environment, managing its risks while maintaining an open dialogue with its stakeholders, carrying out community development projects and making sustainable investments. Lundin Petroleum’s commitment to its staff, shareholders, host governments and communities, and society to act as a responsible corporate citizen takes place by making the right choices in the board room and on the ground, day after day. The Corporate Responsibility section of the Annual Report is an important way for Lundin Petroleum to communicate to its stakeholders on CR issues it has addressed during the year. It is also submitted as part of its Communication on Progress to the United Nations Global Compact since 2010. The section below provides an overview of the CR actions highlighted in the Company’s Annual Reports over the past ten years. TEN YEARS OF CORPORATE RESPONSIBILITY REPORTING AT LUNDIN PETROLEUM 2001 Lundin Petroleum’s Code of Conduct and CR Commitment translate into concrete projects under the Company’s Community Development and Humanitarian Assistance Programme in Sudan. Lundin Petroleum’s Policies on Health, Safety and Environment (HSE) are implemented in its newly acquired Coparex assets in France, Indonesia, the Netherlands and Tunisia. Lundin Petroleum develops its company-wide HSE Management System (the Green Book) modelled after ISO 14001. Lundin Petroleum introduces tracking of HSE Key Performance Indicators (KPIs), i.e. Fatalities, Lost Time Accidents and Oil Spills/Gas Leaks. The Norwegian Petroleum Safety Authority reviews the Company’s corporate HSE culture and Management Framework and visits its operations in France, prior to agreeing to Lundin Petroleum’s acceptance as an operator in Norway. Internal HSE reporting is expanded to include actions taken in furtherance of Green Book requirements; third party HSE audits are conducted in France, Tunisia and the UK. CR analyses and stakeholder engagement take place prior to the initiation of operations in new areas and HSE issues are further streamlined in the conduct of worldwide operations. Projects are carried out under Lundin Petroleum’s Corporate Donations Programme. In view of the expansion of Lundin Petroleum’s activities in Africa, Europe and South East Asia, the Company aligns its CR framework with international initiatives, such as the United Nations Global Compact (UNGC), the United Nations Framework Convention on Climate Change and the Kyoto Protocol, the Extractive Industry Transparency Initiative, the Voluntary Principles for Security and Human Rights and the United Nations Millennium Development Goals. Lundin Petroleum initiates a comprehensive review of its HSE framework requirements to align them with international standards like ISO 14001 and OHSAS 18001. The management of HSE issues at corporate and operational levels is systematised through the establishment of HSE Plans, the holding of regular HSE Teleconferences and Management Meetings, the elaboration of HSE Management System Requirements and the introduction of leading HSE KPIs and greenhouse gas emissions’ reporting. Lundin Petroleum formally becomes a member of the UNGC; the CR section of the Annual Report is submitted as a Communication on Progress and describes the steps the Company has taken to integrate the Principles in its strategy and day to day operations. 2002 2003 2004 2005 2006 2007 2008 2009 2010 32 Lundin Petroleum ANNUAL REPORT 2011

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