Sustainable Solutions for the Oil and Gas Industry

1 Sustainable Solutions for the Oil and Gas Industry The world's leading sustainability consultancy The oil and gas Industry ERM is a leading global provider of integrated environmental, health, safety, risk and social currently faces the greatest consulting and sustainability-related services. We support the oil and gas Industry across the entire spectrum of operations, delivering environmental, health and safety innovative Solutions and helping clients to understand and manage their business challenges in its entire history risks. Established since 1971, we have 140. offices in 39 countries and employ over 5000 people. Our extensive track record and Industry knowledge enables us to deliver world class Sustainable Solutions to the complex challenges of exploration, production, refining and retail of hydrocarbons.

2 1. Industry increasingly recognises ERM's Oil and Gas Services that a sustained licence to operate requires the management of Sustainable Strategy and Transformation Services non-technical risks Development and implementation of strategies, programmes and tools for Sustainable businesses. Transaction Services Supporting successful business mergers and acquisitions. Impact Assessment and Planning Achieving project approvals by assessing and managing environmental, social and health impacts, obtaining permits and supporting stakeholder engagement. Air Quality and Climate Change Proactively addressing air quality, energy efficiency and carbon management challenges to enhance shareholder value.

3 Contaminated Site Management Helping clients better manage their contaminated sites, mitigate liability and realise value. Performance and Assurance Helping corporations reach their SHE performance potential. Risk Management Quantifying and managing the safety risks associated with hazardous installations and processes with the objective of protecting people, assets and the environment. 2 3. What we Sustainability from them) within days of them happening. The Importance of Stakeholder Consultation can become stale and the results taken less If employees are not asking themselves Shareholders are also demanding more Many oil and gas projects get delayed seriously with findings left unresolved.

4 When on a more or less constant basis how information to reassure them that the because of adverse reaction from the this happens, in our experience it is time could this project or operation be done companies they are investing in are local community. A tick box' approach to start again and return to basics with an more sustainably?' then you have probably managing their risks. to community consultation the lack of a effective, authoritative programme that deals not managed to embed sustainability social licence to operate can do more with measurable performance improvement. into your organisation. The early integration Dealing with Contamination and Spills damage than no consultation at all.

5 In of non-technical risk assessment into If the oil Industry wants to operate in our experience, early, professional and Risk Management and Safety Culture business planning and the proportionate environmentally sensitive locations then it well directed community consultation can Identifying, assessing and managing risk management of those risks in project needs to demonstrate a superb record of achieve huge positive results not just for the from the start of every project or operation implementation will aid not only a preventing contamination and cleaning it initial phases of the project, but if handled is the key to success. We also find that a more Sustainable approach, but also a up responsibly wherever it occurs on land correctly, for the duration of the venture.

6 Strong health and safety culture delivers more cost-effective one. or at sea. Increasingly clients are adopting Concerns about the costs and greater efficiency and productivity. When Sustainable remediation as the most resources required to ensure effective standards start to be ignored and less Information Management Systems cost-effective way of dealing with community engagement typically disappear attention is paid to working safely, the In our experience companies that have contaminated sites. at the first signs of community backlash. culture can deteriorate quite rapidly. In our high standards of SHE performance have experience maintaining high levels of safety sophisticated information systems that Effective auditing performance is hard work - it needs to be deliver timely and accurate data.

7 They share Many organisations invest substantial recognised and reinforced in every operation information on incidents and accidents resources into their auditing programmes in everything that is done, all the time. across their global operations (and learn which are used to reassure management that risks are being managed properly. After several years, auditing programmes 4 5. ERM provides Upstream Midstream Downstream services across the Exploration and Refining and Development Production Transportation Decommissioning Appraisal Petrochemical entire oil and Strategic Sustainability Advice and Change Management gas value Transaction Impact Assessment Performance Assurance Contaminated Site Air Quality and chain Services M&A due diligence and Planning Strategic and economic and Operation Risk Management Management Site investigation and Climate Change Climate change risk, assessments remediation adaptation.)

8 Mitigation Evaluation of potential liabilities Air quality and noise Environmental planning and Strategies for strategy and implementation Quantification and environmental impact Water wastewater and contaminated sites Emissions inventories management of risk assessments water management Oil Spill Preparedness Construction management Air pollution dispersion SHE due diligence Environmental management services modelling Environmental mitigation actions information systems (EMIS). Project financing Social impact assessment Decontamination, Hazardous air pollutant (Equator Principle reviews) auditing and verification and management plans decommissioning and compliance programmes Analysis for bankruptcy, Management systems demolition reserves, provisioning, Asset Environmental management Water sustainability plans Compliance auditing Water, wastewater and waste Retirement Obligations and Energy auditing Integrated environmental, Health and safety management financial reporting social, health impact Sustainable remediation Supply chain management Carbon and energy due diligence assessments Risk management Reporting, assurance.

9 Post-merger integration support Site selection Safety culture communication & branding Best Available Technology SHE cases Management system, SHE Stakeholder engagement &. (BAT) studies culture, gap analysis and SHE management systems local communities benchmarking Best Practicable Environmental Option (BPEO) studies Safety culture transformation Life cycle assessment (LCA). Social, stakeholder and and life cycle management sustainability assessment Biodiversity and ecosystem Reliability/Availability analysis services and other specialist Carbon and water footprinting Deal negotiation support advice HAZID/HAZOP. 6 7. Helping organisations manage their Case Studies impacts on communities and the environment and create value for all Sustainable Operational Excellence, Global Waste Management and Best Practicable stakeholders ERM undertook an inquiry into the state of safety and Sustainable Operational Excellence sustainably safe, reliable and compliant, Environmental Option (BPEO), Algeria ERM reviewed the current arrangements for the management, especially in high hazard operations.

10 The scope was global, targeting storage, treatment and disposal of wastes arising from two operations and corporate centres alike. It revealed deep insights large oil fields. We developed a waste inventory and undertook into underlying performance challenges faced at Group, Regional a review of treatment options, followed by a BPEO assessment. and Asset levels throughout the operations of a global organisation. A Waste Management Action Plan was prepared with detailed The insights were used to create and implement a comprehensive recommendations for the management of priority hazardous wastes. 3-year organisational transformation plan and were described by the client as deepest dive we ever done into operational effectiveness, leadership and culture.