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Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati

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Sustainable Development Awareness Session By Dr. Yasmeen Al Lawati

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    2. PDO – SD Awareness Objectives Trainers notes Explain the session objectivesTrainers notes Explain the session objectives

    3. PDO – SD Awareness

    4. PDO – SD Awareness Source:Adapted from Human Development Report, World Bank, 1997 and World Resources Institute, 1997, as shown in World Business Council for Sustainable Development, 1997 Source:Adapted from Human Development Report, World Bank, 1997 and World Resources Institute, 1997, as shown in World Business Council for Sustainable Development, 1997

    5. PDO – SD Awareness How much of the planet’s ability to produce food and absorb wastes are we currently using? Less than 50% More than 100% 80-90% How much would we use if we all consumed like the average European? 100% 200% 350% Correct answers: - We are using 130% by some estimates - 300-400% if the current global population consumed like Europeans If we all consumed like the average American it would take 7 planet earths to feed, house and deal with our waste products. If C02 is not considered, we are using 60-70% of global capacity. Global GDP is expected to be 4 times larger than today. The environmental footprint of consumption will be forced to change. How much of the planet’s ability to produce food and absorb wastes are we currently using? Less than 50% More than 100% 80-90% How much would we use if we all consumed like the average European? 100% 200% 350% Correct answers: - We are using 130% by some estimates - 300-400% if the current global population consumed like Europeans If we all consumed like the average American it would take 7 planet earths to feed, house and deal with our waste products. If C02 is not considered, we are using 60-70% of global capacity. Global GDP is expected to be 4 times larger than today. The environmental footprint of consumption will be forced to change.

    6. PDO – SD Awareness Sustainable Development Barometer

    7. PDO – SD Awareness Trainers Notes Ask the participants what they understand by SD Explain the genesis of SD concept Rapid Industrialisation since early 1850’s and demand outstrips the resource supply 1962 Silent Spring - Raichel Carson 1972 The Limits to Growth - Meadows 1972 Stockholm Conference UNEP on Regional Pollution 1970’s Growing concern on environment 1984 WCED constituted by UN 1987 Brundtland Report “Our Common Future” This report popularised the SD concept and was discussed at international level at Rio 1992 and the topic is still live at Johannesburg in2002 Trainers Notes Ask the participants what they understand by SD Explain the genesis of SD concept Rapid Industrialisation since early 1850’s and demand outstrips the resource supply 1962 Silent Spring - Raichel Carson 1972 The Limits to Growth - Meadows 1972 Stockholm Conference UNEP on Regional Pollution 1970’s Growing concern on environment 1984 WCED constituted by UN 1987 Brundtland Report “Our Common Future” This report popularised the SD concept and was discussed at international level at Rio 1992 and the topic is still live at Johannesburg in2002

    8. PDO – SD Awareness Trainers Notes Explain the participants the three basic components of SD Explain to them that any development will be sustainable if all three components are considered in the decision making process. Sustainability through strategies and actions at the intersections Explain to them what each of the components mean Planet -Making efficient use of energy and resources. Minimising the impact on environment by reducing the discharges and emissions and treating it. Promote preservation of natural resources. People -The development activity should not have negative impact on social front and it should be socially acceptable. More transparency Profits -Stress the point that if the development activity is to be sustainable it should be profitable. Shareholders should get better returns Trainers Notes Explain the participants the three basic components of SD Explain to them that any development will be sustainable if all three components are considered in the decision making process. Sustainability through strategies and actions at the intersections Explain to them what each of the components mean Planet -Making efficient use of energy and resources. Minimising the impact on environment by reducing the discharges and emissions and treating it. Promote preservation of natural resources. People -The development activity should not have negative impact on social front and it should be socially acceptable. More transparency Profits -Stress the point that if the development activity is to be sustainable it should be profitable. Shareholders should get better returns

    9. PDO – SD Awareness Embedding sustainable development Making sustainable development part of the way we work means learning to look at all aspects of our business through a new lens. This lens lets us see the world through the eyes of our stakeholders and helps us to understand the many ways, good and bad, that our business activities affect and are affected by society and the environment. We are beginning to use this insight to improve the performance of today’s operations and identify profitable business opportunities for the future. We have to look at al our operations – at tomorrows business opportunities – through what we at least have termed , a sustainable development lens. A lens that examines not only the financil side of any business initiative we might want to make but also takes in the envrionemtna and social impact of our intended operations.   We have seven high level principles that guide our contribution to sustainable development:   Protect the environment Manage resources Generate robust profitability Deliver value to customers Respect and safeguard people Benefit communities Engage with stakeholders Integrating sustainable development across our operations Sustainable development considerations are being integrated into the way we work through the following:   Performance reviews A Social Responsibility Committee of non-executive directors reviews our performance in living by our Business Principles, including our support for fundamental human rights and our commitment to contribute to sustainable development.   Mandatory Shell policies and standards Policies include our Business Principles and our Health, Safety and Environment policy. Global standards cover, for example, diversity and inclusiveness, security, environmental performance, biodiversity, health management and animal testing.   Internal assurance Executives responsible for each Shell Business and country operation must provide annual assurance that their operations comply with our policies and standards.   Appraisal and reward Sustainable development counts in the appraisal of our business units and the evaluation and remuneration of staff in many of our operations.   Investment reviews Before we invest, projects are required to complete integrated environmental, social and health impact assessments and have suitable plans in place to engage with stakeholders. Major projects must factor in the costs of the greenhouses gases they will release to encourage them to develop designs with lower emissions.   Interactions with the communities where we operate All our major Chemicals sites have a social performance plan, with internal reviews for high-risk facilities. Our major Oil Products sites and Exploration and Production companies and projects will do the same in 2004. A programme of social performance reviews is underway in our Gas and Power business.   A central Social Performance Management Unit provides leadership, tools and support. We recently completed in-depth reviews at four Shell sites that helped us define what social performance means in practice for our operations. In 2003, we also introduced a minimum standard for stakeholder engagement.    Training and communication Leadership development, training and internal communication help employees to increasingly understand what contributing to sustainable development means for their job, so that they can act accordingly.   Looking ahead Our biggest challenge remains implementing these sustainable development requirements consistently in all our activities worldwide. We continue to make progress, but recognise that we still need to work hard to improve performance at projects and operations where we have not yet got it right. Embedding sustainable development Making sustainable development part of the way we work means learning to look at all aspects of our business through a new lens. This lens lets us see the world through the eyes of our stakeholders and helps us to understand the many ways, good and bad, that our business activities affect and are affected by society and the environment. We are beginning to use this insight to improve the performance of today’s operations and identify profitable business opportunities for the future. We have to look at al our operations – at tomorrows business opportunities – through what we at least have termed , a sustainable development lens. A lens that examines not only the financil side of any business initiative we might want to make but also takes in the envrionemtna and social impact of our intended operations.   We have seven high level principles that guide our contribution to sustainable development:   Protect the environment Manage resources Generate robust profitability Deliver value to customers Respect and safeguard people Benefit communities Engage with stakeholders Integrating sustainable development across our operations Sustainable development considerations are being integrated into the way we work through the following:   Performance reviews A Social Responsibility Committee of non-executive directors reviews our performance in living by our Business Principles, including our support for fundamental human rights and our commitment to contribute to sustainable development.   Mandatory Shell policies and standards Policies include our Business Principles and our Health, Safety and Environment policy. Global standards cover, for example, diversity and inclusiveness, security, environmental performance, biodiversity, health management and animal testing.   Internal assurance Executives responsible for each Shell Business and country operation must provide annual assurance that their operations comply with our policies and standards.   Appraisal and reward Sustainable development counts in the appraisal of our business units and the evaluation and remuneration of staff in many of our operations.   Investment reviews Before we invest, projects are required to complete integrated environmental, social and health impact assessments and have suitable plans in place to engage with stakeholders. Major projects must factor in the costs of the greenhouses gases they will release to encourage them to develop designs with lower emissions.   Interactions with the communities where we operate All our major Chemicals sites have a social performance plan, with internal reviews for high-risk facilities. Our major Oil Products sites and Exploration and Production companies and projects will do the same in 2004. A programme of social performance reviews is underway in our Gas and Power business.   A central Social Performance Management Unit provides leadership, tools and support. We recently completed in-depth reviews at four Shell sites that helped us define what social performance means in practice for our operations. In 2003, we also introduced a minimum standard for stakeholder engagement.    Training and communication Leadership development, training and internal communication help employees to increasingly understand what contributing to sustainable development means for their job, so that they can act accordingly.   Looking ahead Our biggest challenge remains implementing these sustainable development requirements consistently in all our activities worldwide. We continue to make progress, but recognise that we still need to work hard to improve performance at projects and operations where we have not yet got it right.

    10. PDO – SD Awareness Trainers Notes Explain PDO’s Mission on SD Awareness and understanding on SD within and outside the organisation Integrate SD with business rather than a bolt on activity Identify roles Engagement of stakeholders in management Transparency in reporting SD for better credibility Trainers Notes Explain PDO’s Mission on SD Awareness and understanding on SD within and outside the organisation Integrate SD with business rather than a bolt on activity Identify roles Engagement of stakeholders in management Transparency in reporting SD for better credibility

    11. PDO – SD Awareness Move to an ‘engage me’ world

    12. PDO – SD Awareness Stakeholder Maps

    13. PDO – SD Awareness Stakeholder Engagement

    14. PDO – SD Awareness

    15. PDO – SD Awareness

    16. PDO – SD Awareness Trainers Notes Since 1996 PDO invests around $ 5 million in projects in various social development projects. Education and training for staff, Contractors (including LCC) and Students . Student scholarships. Around 250 PDO scholars at various foreign universities. Vocational training. Omananisation at 80% in PDO, providing better skill development. Provides fresh and safe water to the communities in the interior. Also looking at treating produced water. Business and HSE training for the LCC. In 2001 opened BDC which provide advise and assistance to LCC’s. Trainers Notes Since 1996 PDO invests around $ 5 million in projects in various social development projects. Education and training for staff, Contractors (including LCC) and Students . Student scholarships. Around 250 PDO scholars at various foreign universities. Vocational training. Omananisation at 80% in PDO, providing better skill development. Provides fresh and safe water to the communities in the interior. Also looking at treating produced water. Business and HSE training for the LCC. In 2001 opened BDC which provide advise and assistance to LCC’s.

    17. PDO – SD Awareness Trainers Notes PDO first company in Middle East to get certified to ISO 14001 for all assets. First certified in 1998 recertified in 2002 90% of associated gas is now utilised and there by reducing venting and flaring. Monitoring and reducing gas emissions. Eg CO2 (GWP) emissions down by 11% from 1999 to 2002 Support for white oryx reserve financial support, environmental controls etc. CFC halon phase out 85% of CFC and 99% of Halons phased out by 2002. Remaining will be out end of 2004. SWD decreased from 27.5% in 2000 to 23.07% in 2003 Pilot projects have been started to utilise the produced water in a more efficient way eg steam injections, treatment of produced water Reed beds. In collaboration with SQU solar car was developed First phase already completed and second phase has started and propose to launch it by third quarter of 2004 Trainers Notes PDO first company in Middle East to get certified to ISO 14001 for all assets. First certified in 1998 recertified in 2002 90% of associated gas is now utilised and there by reducing venting and flaring. Monitoring and reducing gas emissions. Eg CO2 (GWP) emissions down by 11% from 1999 to 2002 Support for white oryx reserve financial support, environmental controls etc. CFC halon phase out 85% of CFC and 99% of Halons phased out by 2002. Remaining will be out end of 2004. SWD decreased from 27.5% in 2000 to 23.07% in 2003 Pilot projects have been started to utilise the produced water in a more efficient way eg steam injections, treatment of produced water Reed beds. In collaboration with SQU solar car was developed First phase already completed and second phase has started and propose to launch it by third quarter of 2004

    18. PDO – SD Awareness Trainers Notes Adopting online bidding and avoiding large volume of paperwork and human resources Infrastructure like roads (6000 km) supports business and social needs PDO’s Electrical grid helps Government to supply even to remote areas. LCC development for better profits for local people and sustainability EOR Trainers Notes Adopting online bidding and avoiding large volume of paperwork and human resources Infrastructure like roads (6000 km) supports business and social needs PDO’s Electrical grid helps Government to supply even to remote areas. LCC development for better profits for local people and sustainability EOR

    19. PDO – SD Awareness Trainers Notes Balancing long term and short term objectives - BTL Industries Integration of the three main principles Profits/Planet & People deviation from the traditional approach of Profits alone Engagement with stakeholders- encouraging them to contribute getting our “license to operate” Building partnerships rather than just collaborating. Trainers Notes Balancing long term and short term objectives - BTL Industries Integration of the three main principles Profits/Planet & People deviation from the traditional approach of Profits alone Engagement with stakeholders- encouraging them to contribute getting our “license to operate” Building partnerships rather than just collaborating.

    20. PDO – SD Awareness Trainers Notes Adopting online bidding and avoiding large volume of paperwork and human resources Infrastructure like roads (6000 km) supports business and social needs PDO’s Electrical grid helps Government to supply even to remote areas. LCC development for better profits for local people and sustainability EOR Trainers Notes Adopting online bidding and avoiding large volume of paperwork and human resources Infrastructure like roads (6000 km) supports business and social needs PDO’s Electrical grid helps Government to supply even to remote areas. LCC development for better profits for local people and sustainability EOR

    21. PDO – SD Awareness Why IIA Guideline? Measures to mitigate projects impacts License to operate Means to reduce the overall business cost Complimenting the legislative role of government Means to contribute to SD of Oil & Gas in Oman Meets international standards

    22. PDO – SD Awareness

    23. PDO – SD Awareness Working Example

    24. PDO – SD Awareness 48” Gas Loop Line Construction of a 48” pipeline parallel to the existing pipeline starting Saih Nihayda to Al-Kamil; total distance of 264 km The pipeline crosses five Wilayats; Adam, Mudhaibi, Al-Qabil, Bidiyah and Al-Kamil. (Excluding Adam, all Wilayats are outside PDO concession area)

    25. PDO – SD Awareness Opportunity Realisation Framework

    26. PDO – SD Awareness Select Phase: 1st Stage Ranking Ranking Methodology Projects will be ranked using a pre-weighted ranking matrix. The matrix consists of a set of 35 pre-weighted questions covering 5 aspects; environment, social and economic, critical success factors & risks. Each question will be rated from 0-3 depending on the extent of alignment between the proposed project objectives and PDO social investment objectives. Set Criteria 0 - Does not meet criteria 1 – Partially meets criteria 2 – meets criteria 3 – exceeds criteria Rating 1 - Not very important 2 - Slightly important 3 - Important 4 - Very important 5 - Essential Ranking Methodology Projects will be ranked using a pre-weighted ranking matrix. The matrix consists of a set of 35 pre-weighted questions covering 5 aspects; environment, social and economic, critical success factors & risks. Each question will be rated from 0-3 depending on the extent of alignment between the proposed project objectives and PDO social investment objectives. Set Criteria 0 - Does not meet criteria 1 – Partially meets criteria 2 – meets criteria 3 – exceeds criteria Rating 1 - Not very important 2 - Slightly important 3 - Important 4 - Very important 5 - Essential

    27. PDO – SD Awareness Select Phase: Ranking Exercise Results 27 potential social project proposals ranked 4 Quick wins; 7 proceeded to 2nd stage ranking; (3 potential projects selected); 3 for later implementation; 11 rejected; and 2 not ranked Focus Areas: Health, Quality of Life, Sustainable Livelihoods, Local Capacity Building

    28. PDO – SD Awareness Basic Infrastructure Support–al Qabil Objective: Support basic infrastructure requirements to improve living standards of households in project-effected communities Description: One-time monetary donation to the Wali to (partially) fund an infrastructure project for identified households Beneficiaries: Households in Al Khorais, Al Sarhat, Hailat Raei Shajarah – Al Qabil Community Benefits: Improved quality of life Business Benefits: Social licence to operate, enhanced reputation, improved social performance, work in partnership with provincial governments and alignment with government development plans Exit Date: Q 2 2005 Cost: $ 260 000

    29. PDO – SD Awareness Trainers Notes Explain the PDO SD Structure Steering Committee develops the strategy and defines what is required SD implementation group defines actions and activities to meet requirements Asset and Project Teams execute the actions and gives feed back for continual improvement. SD Steering Committee MD, OND, OSD, HD, CSM, HXM, CSM6 SD Implementation Group CSM,HXM,OSH,ONH,FPB2,OTM6,LCC,CSM6 Note all P’s are represented Govt. Social Implementation Committee chaired by Under Secretary of Ministry of Economy Rep from MOG, Ministrty of Interior and from PDO FD, HXM, CSM6 Trainers Notes Explain the PDO SD Structure Steering Committee develops the strategy and defines what is required SD implementation group defines actions and activities to meet requirements Asset and Project Teams execute the actions and gives feed back for continual improvement. SD Steering Committee MD, OND, OSD, HD, CSM, HXM, CSM6 SD Implementation Group CSM,HXM,OSH,ONH,FPB2,OTM6,LCC,CSM6 Note all P’s are represented Govt. Social Implementation Committee chaired by Under Secretary of Ministry of Economy Rep from MOG, Ministrty of Interior and from PDO FD, HXM, CSM6

    30. PDO – SD Awareness Trainers Notes Explain to them that based on the SAQ a score is fixed and various level of score corresponds to various level of integrating SD into PDO activities. By end of 2003 it is expected that we complete the awareness stage and move onto accepting SD as an additional thing in our activities. By end of 2006 it is expected that we integrate SD in our activitiesTrainers Notes Explain to them that based on the SAQ a score is fixed and various level of score corresponds to various level of integrating SD into PDO activities. By end of 2003 it is expected that we complete the awareness stage and move onto accepting SD as an additional thing in our activities. By end of 2006 it is expected that we integrate SD in our activities

    31. PDO – SD Awareness

    32. PDO – SD Awareness Need more info… Trainers NotesTrainers Notes

    33. PDO – SD Awareness Trainers Notes And the journey for SD and through it a better future for the whole worldTrainers Notes And the journey for SD and through it a better future for the whole world

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