The World Bank Group · Corporate Social Responsibility Practice 34662 The CSR Practice advises developing country governments on public policy roles and instruments they can most usefully deploy to encourage corporate social responsibility. v 2 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON PART II OF II: Oil and Gas Mining March 2004 CRS_FM.qxd 3/3/04 12:18 Page vi CRS_FM.qxd 3/3/04 12:18 Page i COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON PART II OF II: Oil and Gas Mining Gare Smith, Partner and Chairperson, Corporate Social Responsibility Practice Group, Foley Hoag LLP Dan Feldman, Attorney, Corporate Social Responsibility Practice Group, Foley Hoag LLP January 2004 T A B L E O F C O N T E N T S i CRS_FM.qxd 3/3/04 12:18 Page ii This report is a product of the staff of the World Bank. The findings, interpretations and conclusions expressed herein do not necessarily re- flect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guaran- tee the accuracy of the data included in this work. Printed on Acid-Free Recycled Paper. CRS_FM.qxd 3/3/04 12:18 Page iii Table of Contents 1.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.3.5 Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.0 The Oil and Gas Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.3.6 Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.3.7 Pollution Control and Hazardous 2.1 Scope and Methodology . . . . . . . . . . . . . . . . . . . . . . . 3 Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.2 Findings Regarding Human Rights 2.3.8 Waste Management . . . . . . . . . . . . . . . . . . . . . 20 and Labor Rights Practices . . . . . . . . . . . . . . . . . . . . . . 5 2.3.9 Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.2.1 Forced Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.3.10 Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.2.2 Child Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.4 Findings Regarding Socio-Economic 2.2.3 Wages, Benefits, and Terms of Employment . . . . 7 and Community-Related Issues . . . . . . . . . . . . . . . . . 21 2.2.4 Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.4.1 Indigenous People . . . . . . . . . . . . . . . . . . . . . . 22 2.2.5 Non-Discrimination and Diversity . . . . . . . . . . 9 2.4.2 Land Rights, Resettlement, 2.2.6 Harassment, Abuse, and Disciplinary Action . . . 10 and Displacement . . . . . . . . . . . . . . . . . . . . . . 24 2.2.7 Freedom of Association and 2.4.3 Local Economic Development . . . . . . . . . . . . 25 Collective Bargaining . . . . . . . . . . . . . . . . . . . 11 2.4.4 Bribery and Corruption/Facility Payments . . . . 26 2.2.8 Labor/Management Relations, Training, and 2.4.5 Political Contributions . . . . . . . . . . . . . . . . . . 27 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2.4.6 Financial Transparency . . . . . . . . . . . . . . . . . . 28 2.2.9 Security Practices . . . . . . . . . . . . . . . . . . . . . . 13 2.4.7 Competition and Pricing . . . . . . . . . . . . . . . . . 29 2.3 Findings Regarding Environmental Standards . . . . . . 14 2.3.1 General Policy Statement and EMS Standards. . . 14 3.0 The Mining Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2.3.2 Health and Safety . . . . . . . . . . . . . . . . . . . . . . 15 3.1 Scope and Methodology . . . . . . . . . . . . . . . . . . . . . . 31 2.3.3 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.2 Findings Regarding Human Rights 2.3.4 Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 and Labor Rights Practices . . . . . . . . . . . . . . . . . . . . . 33 iii CRS_FM.qxd 3/3/04 12:18 Page iv 3.2.1 Forced Labor . . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.4.2 Land Rights, Resettlement, 3.2.2 Child Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 and Displacement . . . . . . . . . . . . . . . . . . . . . . 53 3.2.3 Wages, Benefits, and Terms of Employment. . . 35 3.4.3 Local Economic Development . . . . . . . . . . . . 54 3.2.4 Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . 36 3.4.4 Bribery and Corruption/Facilitation Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 3.2.5 Non-Discrimination and Diversity . . . . . . . . . 36 3.4.5 Political Contributions . . . . . . . . . . . . . . . . . . 55 3.2.6 Harassment, Abuse, and Disciplinary Action. . . . . . . . . . . . . . . . . . 38 3.4.6 Financial Transparency . . . . . . . . . . . . . . . . . . 56 3.2.7 Freedom of Association and Collective 3.4.7 Competition and Pricing . . . . . . . . . . . . . . . . . 57 Bargaining . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3.4.8 Mine Closure . . . . . . . . . . . . . . . . . . . . . . . . . . 58 3.2.8 Labor/Management Relations, Training, 3.4.9 Artisinal and Small-Scale Mining . . . . . . . . . . 59 and Education . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.2.9 Security Practices . . . . . . . . . . . . . . . . . . . . . . 41 Annex A Oil and Gas Sector 3.3 Findings Regarding Environmental Standards . . . . . . 41 Labor and Human Rights Standards. . . . . . . . . . . 63 3.3.1 General Policy Statement and EMS Standards . . . . . . . . . . . . . . . . . . . . . . . . 42 Annex B Oil and Gas Sector 3.3.2 Health and Safety . . . . . . . . . . . . . . . . . . . . . . 43 Environmental Standards . . . . . . . . . . . . . . . . . . 107 3.3.3 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.3.4 Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Annex C Oil and Gas Sector 3.3.5 Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Socio-Economic Issues . . . . . . . . . . . . . . . . . . . . 163 3.3.6 Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.3.7 Pollution Control and Hazardous Annex D Mining Sector Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Labor and Human Rights Standards. . . . . . . . . . 225 3.3.8 Waste Management . . . . . . . . . . . . . . . . . . . . . 48 3.3.9 Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Annex E Mining Sector Environmental Standards . . . . . . . . . . . . . . . . . . . 271 3.3.10 Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 3.4 Findings Regarding Socio-Economic and Community-Related Issues . . . . . . . . . . . . . . . . . 50 Annex F Mining Sector Socio-Economic Issues . . . . . . . . . . . . . . . . . . . . 339 3.4.1 Indigenous People . . . . . . . . . . . . . . . . . . . . . . 51 iv T A B L E O F C O N T E N T S CRS_FM.qxd 3/3/04 12:18 Page v COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON CRS_FM.qxd 3/3/04 12:18 Page vi CRS_Oil-Gas_Ch01 3/3/04 12:19 Page 1 1 Introduction This book is the second part of the World Bank Group's report on Bank's technical assistance program. Therefore, the initial companies company codes of conduct and international standards. The first part that were included in this project had direct operations in Vietnam, El of this report (Part I) provides a comprehensive introduction, which Salvador, the Philippines, and Angola. Given the increasingly glob- includes a general overview of Corporate Social Responsibility (CSR) alized nature of many of the multinational enterprises (MNEs) exam- and part of the specific overview of the World Bank Group's CSR ini- ined, however, and the fact that some codes needed to be included in tiative. Please refer to that report for a full background on the history, the project to give the most comprehensive portrait of the state of the purpose, and scope of this project. industry even if they did not have a relevant nexus to one of the four geographic areas targeted, the original regional focus of this project In brief, to support ongoing technical assistance, the World Bank is no longer dominant. The matrices do contain some references Group's Investment Climate Department commissioned a series of re- though to Philippines-specific projects and issues with respect to the search analyses to determine the content of CSR codes of conduct in mining industry and Angola-specific projects and issues with respect targeted industry sectors and the extent to which that content is de- to the oil and gas industry. rived from internationally recognized standards. After codes were identified and researched, they were assessed to determine whether As the second part of a two-part publication, this narrative is an ac- there are emerging trends in the industry sectors with regard to broad companiment only to the matrices that were created for the last two CSR categories of labor and human rights, environmental standards, industry sectors--mining, and oil and gas. The first part of the publi- and social and community impacts. Each of these broad categories cations consists of the matrices and accompanying narrative for the was then divided into a number of "sub-categories," reflected on the first three industry sectors--apparel, footwear, and light manufactur- attached matrices, which were drawn from similar sub-categories de- ing; agribusiness; and tourism. veloped by the Global Reporting Initiative (GRI) in the GRI Sustain- For each of the five industry sectors, key corporate and non-corporate ability Reporting Guidelines. players were identified and their codes of conduct were summarized. Foley Hoag LLP was engaged to research the codes of conduct of ap- Brief summary statements about each of these codes were put into a proximately 100 companies, as well as the codes of conduct of entities, series of comparative matrices, which divide the CSR information including non-governmental organizations (NGOs), multi-stakeholder into broad CSR categories, including human and labor rights, envi- groups, and trade unions. Originally, companies were chosen for par- ronmental standards, and social and community impacts. At the end ticipation in this project that were in an industry sector with a direct of each set of matrices, international standards or benchmarks for each nexus to a particular geographic region that supported the World category are listed, with data primarily drawn from such instruments 1 CRS_Oil-Gas_Ch01 3/3/04 12:19 Page 2 as the Universal Declaration of Human Rights (UDHR), the Interna- exhaustive in their analyses of the codes of conduct examined. Most tional Labour Organization (ILO) Conventions and Recommenda- codes go into far more depth in these issues than could be included in the tions, and the United Nations Norms on the Responsibilities of matrices and many had provisions in their codes for issues that were not Transnational Corporations and Other Business Enterprises with Re- examined by this project. Official consents were received from all the gard to Human Rights (UN Norms). The World Bank has also com- corporate and non-corporate participants in the matrices. missioned additional analyses, not reflected in these matrices, which In the process of analyzing the codes of conduct, a decision was made integrate the national laws of key countries into these standards. This to review only the policies of MNEs and non-corporate entities, and is important because some provisions in codes of conduct (e.g., wages not their practices. At the completion of this analysis, however, and in for work) defer almost exclusively to local law. recognition of this potential disparity, follow-up work was commis- In seeking information on these codes of conduct, only publicly available sioned to examine implementation practices with respect to the codes. information was reviewed, drawn primarily from the websites and an- That report is a briefer and less comprehensive assessment of trends nual reports of participating companies. A significant effort was made to in implementation mechanisms. It was completed through an exami- keep the summaries of the information short and focused on the areas nation of developments within sector-specific industries, rather than being examined, to provide the best possible comparative analysis. It is the practices of any particular company. It is also published by the recognized that the attached matrices are by no means comprehensive or World Bank Group. 2 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 3 2 The Oil and Gas Sector 2.1 Scope and Methodology (OECD) Guidelines for Multinational Enterprises, and the Principles for the Conduct of Company Operations within the Minerals Industry The fourth industry sector examined under the auspices of this proj- produced by the Mineral Policy Institute. ect was the oil and gas industry and, initially, companies and entities with a nexus to Angola. The codes of conduct of the following major All of these companies and non-corporate entities consented to par- multinational petroleum companies were analyzed: BP p.l.c. (BP), ticipating in this project, with the exception of Sonangol, Canadian Canadian Natural Resources Ltd. (Canadian Natural), ChevronTexaco Natural, Schlumberger, and CAPP. Corporation (ChevronTexaco), Eni S.p.A. (Eni) (which includes the The companies selected for participation in this analysis were primar- company that formerly operated in Angola as Agip), Exxon Mobil ily large MNEs (with the exception of Sonangol) with well-developed Corporation (Exxon Mobil), Galp Energia, SGPS, S.A. (Galp Energia), CSR activities. Due to the nature of this analysis, a true cross-sampling Marathon Corporation (Marathon), Norsk Hydro ASA (Norsk Hydro), of all types of oil and gas companies was not attempted because some Occidental Petroleum Corporation (Occidental), Odebrecht S.A. companies do not have codes of conduct. Rather, a decision was made (Odebrecht), Schlumberger Limited (Schlumberger), Shell Interna- to examine the largest, most multinational, and most progressive com- tional Limited (Shell), Sonangol, Statoil ASA (Statoil), and TOTAL panies, in an effort to determine areas of overlap amongst this "lead- S.A. (Total) Additionally, as in the other sectors, codes of conduct of ership" cadre. Any "emerging trends" that were identified helped to oil and gas associations, NGOs, and multilateral organizations were ascertain and define "industry practices" and how they compare to in- also summarized, including: the American Petroleum Institute (API), ternational standards. the Australian Institute of Petroleum (AIP), the Regional Association of Oil and Natural Gas Companies in Latin America and the The codes of conduct from participating entities were analyzed and Caribbean (ARPEL), the Canadian Association of Petroleum Pro- their key provisions were summarized in three matrices--one devoted ducers (CAPP), the International Chamber of Commerce (ICC), the to human rights and labor rights issues, one to environmental stan- South African Petroleum Industry Association (SAPIA), Social Ac- dards, and one to socio-economic conditions and community con- countability International (SA8000), Transparency International (TI) cerns. This final category was not included in the industry sectors and Social Accountability International's (SAI) Business Principles analyzed in Part I because those industries typically do not have these for Countering Bribery, Amnesty International's Human Rights Prin- provisions in their codes of conduct. Due to the distinguishing char- ciples for Companies, the Caux Roundtable Principles for Business, acteristics of extractive industries, however, particularly their engage- the Coalition for Environmentally Responsible Economies (CERES) ment with the communities in which they operate, these additional Principles,theOrganizationforEconomicCooperationandDevelopment matrices were added for the second part of the study. 3 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 4 For the human rights and labor rights analysis, the examination fo- how emerging trends compare to international benchmarks. For the cused on provisions in each code of conduct that dealt with the fol- human rights and labor rights categories, the most frequently refer- lowing "core" issues: forced labor, child labor, wages and benefits, enced international standards are drawn from the UDHR, ILO Con- hours of work, non-discrimination and diversity, harassment and ventions and Recommendations, the UN Norms, and other abuse, freedom of association and collective bargaining, labor/man- international instruments. agement relations, training and education, indigenous rights, and se- Due to the relative lack of any international "standard" for environ- curity practices. An overview of the "philosophy" of each code of mental issues comparable to the role played by the ILO Conventions and conduct is also provided in an initial category titled "general policy Recommendations for human rights and labor issues, standards from the and strategy statement," and the final category on the matrix summa- World Bank/ International Finance Corporation (IFC) "Pollution Pre- rizes the "monitoring and compliance framework." Neither of these vention and Abatement Handbook" (The Handbook) have been in- categories, however, is described in detail in this narrative, since they cluded in the final row of the environmental matrix. The standards are specifically tailored to the individual entities. presented from that handbook primarily include generally applicable For the environmental analysis, the matrix was broken down into cat- standards distilled from the guidelines, although there are occasionally egories modeled on the categories in the GRI's Sustainability Reporting more specific standards tailored to onshore oil and gas development. Guidelines. Thus, there are separate categories in the environmental matrix including summaries from the codes on the following topics: There is also a relative lack of any international "standard" for the health and safety, energy, water, biodiversity, emissions, pollution socio-economic and community-based categories. Therefore, the most control and hazardous substances, waste management, suppliers, and frequently referenced standards are drawn from either less specific and transport. In a complement to the material provided in the human broadly-themed United Nations (UN) documents, including the Inter- rights and labor matrix, a preliminary category was also included to national Covenant on Civil and Political Rights, or documents like the provide the code's "general policy statement" on environmental is- recently passed UN Norms, which is arguably not yet an international sues, as well as one for any statement the entity may have on Envi- "standard" because it has not yet been adopted by any nation. Addi- ronmental Management Systems (EMSs). A final category, like that tionally, when applicable, World Bank Operational Directives were in the labor and human rights matrix, was created to summarize the also used, but although these represent important multilateral per- "monitoring and compliance framework." spectives, they are arguably not as much of a "standard" as would be an international treaty signed and ratified by sovereign nations. In the matrix detailing the socio-economic issues, the following cate- gories were included for the analysis of each entry: public participa- In aggregating the material in the matrices, it became apparent that tion/community affairs, indigenous people, land rights, resettlement and mere codes of conduct would not contain all the information that was displacement, local economic development, bribery and corruption, po- being sought on these issues. In fact, the extractive industries differ litical contributions, financial transparency, competition and pricing, vol- from the other industry sectors analyzed because companies typically untary initiatives, and third party applicability. A category entitled have drafted "principles" or "guidelines" rather than actual codes of "social impact assessment" seeks to determine if any of the companies conduct, and such principles frequently cite and describe practices conduct such assessments before commencing operations in a given area. rather than policies. At the end of each of the matrices, international standards are presented Thus, although some of the attached information has been taken from for each of the categories, so that analyses can be made to determine salient codes of conduct, a wide range of other material was also 4 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 5 examined--particularly to ascertain a company's socio-economic ceptable worker treatment such as physical punishment and involun- practices or environmental policies. These other materials include tary servitude or other forms of abuse." Statoil provides that it is "com- items such as Annual Reports; Health, Safety and Environment Re- mitted to a set of core labor standards which we believe should be ports; Sustainable Development Policies; Social Responsibility Re- universally applied, regardless of a country's level of development, in- ports; Collective Bargaining Agreements; and a range of similar cluding freedom from forced labor." corporate documents. The first time each company or non-corporate BP also made the very important additional statement that it seeks to entity is cited in the matrices, a footnote is included which details the obtain, through its ethics certification process, specific assurances that various documents consulted and reviewed in ascertaining the mater- "its businesses" do not employ forced labor, thereby creating signifi- ial in the matrices. cant commitments down its supply chain. Since it is less desirable to use material that is descriptive of practices, Most companies, however, are less specific and simply state their rather than policies, this was only done when a company or non- commitment to operating within the framework of existing human corporate entity had no stated policy on the issue. Thus, in seeking to rights treaties and agreements, which in turn prohibit the use of forced determine the emerging industry standards in these broad issue areas, labor. Therefore, although these companies may not include state- it was determined to be more important to include any public state- ments about forced labor in their codes of conduct or equivalent cor- ment an entity had on a particular issue than to keep exactly to the text porate documents, they nonetheless make public commitments about in the "code of conduct." the issue. For instance, ChevronTexaco states that "in accordance with the Sullivan Principles," it does not tolerate "unacceptable worker treatment such as physical abuse and involuntary servitude." Total ad- 2.2 Findings Regarding Human Rights heres to the UDHR and the UN Global Compact principles regarding and Labor Rights Practices labor. 2.2.1 Forced Labor Some other companies subsume statements about the use of forced Unlike the footwear and apparel or agribusiness industry sectors pro- labor into a broader but less defined human rights commitment. Exxon filed in Part I, there is not the same degree of conformity among ex- Mobil states simply that it "condemns the violation of human rights in tractive companies in prohibiting the use of forced labor or child labor. any form" and declares that "human rights violations will not be tol- This is due, in part, to the fact that few oil and gas companies have de- erated." Shell "respects the human rights of their employees" and pro- veloped codes of conduct similar to those used by apparel companies-- vides its employees "with good and safe conditions to work," but perhaps because the nature of work in the oil and gas industry does not offers no specific policy regarding the use of forced labor. lend itself as readily to the type of forced labor or "sweatshop" conditions that are of concern in manufacturing facilities. Marathon, Odebrecht, and Galp Energia do not provide statements or policies regarding the use of forced labor. Some oil and gas companies do, however, provide specific statements regarding the use of forced labor. Among the industry "leaders," Eni Interestingly, few of the non-corporate entities provide specific state- states unequivocally that "forced labor is prohibited, whether it be ments about the use of forced labor, with the notable distinction of slavery or work performed by inmates"; BP provides that it "will not those not specifically geared to the oil and gas industry, such as employ forced labor"; and Norsk Hydro states that it does not accept SA8000, Amnesty International's Human Rights Principles for Com- forced labor. Occidental's policy is that it operates "without unac- panies, and the OECD Guidelines. An exception is the Principles for T H E O I L A N D G A S S E C T O R 5 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 6 the Conduct of Company Operation within the Mineral Industry, Norsk Hydro is one of the few companies to use a specific age limita- which states that companies should ban "the purchase of goods made tion, declaring that it "does not allow child labor and does not engage with forced labor or prison labor," and "recognize that forced labor is children under 16 in [its] operations," although "if the child is secured unacceptable." the right for education, play, rest and family life, limited exceptions may be made if this is in the best interests of the child." Statoil is The prohibition against the use of forced labor was the subject of one "committed to a set of core labour standards" which it believes should of the first global human rights campaigns. The ILO passed the Forced be universally applied, "including the elimination of child labour." Labor Convention (No. 29) in 1930 and augmented it several years later with the Abolition of Forced Labor Convention (No. 105) in Some companies, as with forced labor standards, subsume their child 1957, both of which prohibit the use of any type of forced labor. Sim- labor prohibitions into their adherence to general labor rights stan- ilarly, the UN Global Compact mandates the elimination of "all forms dards. ChevronTexaco, for instance, states that "in accordance with of compulsory labor" as does the UN Norms. the Sullivan Principles," it operates "without unacceptable worker treatment, such as the exploitation of children." Other companies use only broad language, such as Exxon Mobil, 2.2.2 Child Labor which "condemns human rights abuses." Others commit to operating Unlike the light manufacturing and agribusiness sectors, which typi- within the framework of international agreements--such as Eni's cally set the minimum age for child labor in their codes of conduct be- commitment to work under the UDHR, the Fundamental Conventions tween 14 and 18, the oil and gas sector codes are far less specific with of the ILO, and the OECD Guidelines, and Total's commitment to ad- respect to child labor. Rather than stipulate specific ages for the ap- here to the principles of the ILO and, in particular, "those concerning plicability of its child labor standards, most companies employ gen- the use of child labor." eral proscriptions against the use of child labor. Again, this is likely Marathon, Odebrecht, and Galp Energia have no specific policies re- due to the inherent differences in the industries and the fact that many garding the use of child labor, nor do API, AIP, ARPEL, CAPP, ICC, oil and gas companies do not rely on the use of young, largely un- or SAPIA. skilled workers, to the extent that light manufacturing and agribusi- ness companies do. Thus, the emerging standard appears to be that companies in the oil and gas industry prohibit the use of child labor, although they do not As with the forced labor standards, some "leading" companies employ define the term nearly as specifically as in those industry sectors in specific proscriptions against the use of child labor. BP states un- which the problem of child labor is more widespread. Virtually all equivocally that it "will not use child labor in its operations or in the codes comply with the spirit of the UN Global Compact (to "effec- provision of its goods or services, and will seek to facilitate the tran- tively abolish child labor") or the UN Norms (to "respect the rights of sition to alternatives to child employment, such as apprenticeships, children to be protected from economic exploitation"). training, and further education." Similarly, Eni stipulates that "child labor is prohibited, especially in its most strenuous forms," and Occi- Because virtually none of the policies set minimum ages for working, dental operates "without unacceptable worker treatment, such as ex- however, the emerging standard does not necessarily conform with the ploitation of children." Shell has published "management primers" on ILO Minimum Age Convention (No. 138) and the Worst Forms of human rights "and preventing child labour as part of a wider pro- Child Labor Convention (No. 182), which state that minimum age is gramme of awareness training." the greater of 15 (or 14 in certain countries), or the age for completing 6 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 7 local compulsory education. The ILO also provides for far more ex- BP states that it will "set base pay and benefits at competitive levels tensive protections for children than those mandated in most codes, within each national and business network." Eni provides a general such as protecting children from work that is hazardous or would statement ensuring that each of its workers receives "fair treatment "harm health." Additionally, few companies offer the provisions out- based on merit." lined in ILO Recommendation No. 146, which stipulates that for any Shell was the only company of those surveyed which provided spe- child found performing labor, the company must enable them to attend cific targeted numbers, stating that "no employee is paid less than the school and will not hire them during school hours. legal minimum wage nor has to work more than 48 hours a week." Shell also rewards employees for "personal performance and team achievements." 2.2.3 Wages, Benefits, and Terms of Employment Unlike the previously examined industry sectors, which frequently in- Occidental states that "wages, benefits and terms are designed to at- clude specific statements in their codes of conduct about wages and tract and retain top quality talent." It also offers the unique benefit of benefits, including overtime wages, the majority of oil and gas com- providing "qualified employees a general educational assistance pro- panies address this issue far more generally. In the apparel and light gram" with "up to 100% tuition and fee coverage to complete work- manufacturing industry, for example, codes typically stipulate that the related courses." minimum wage must be at least equal to the local minimum wage, and ChevronTexaco references its adherence to the Sullivan Principles in most state that it should be the greater of the local minimum wage or its wage policy, stating that in accordance with those Principles it the prevailing industry standard. By contrast, in the oil and gas sector, "compensates employees to enable them to meet at least their basic most companies have no specific mention of minimum wage or over- needs and provide the opportunity to improve their skills and capabil- time wage salaries, but have principles stating their general compen- ity." This formulation is important, because it is one of the few oil and sation systems. gas companies to make the distinction in providing a "living wage" Virtually always, when an oil and gas company offers a statement on rather than just a minimum wage. Although this issue is quite signifi- compensation policy, it is tied to the industry standard. Statoil states cant in other industry sectors (e.g., apparel and footwear manufactur- explicitly this link with the industry standard: "Levels of pay are about ing in particular), it does not arise frequently among oil and gas average for the industry, and never below the national statutory minimum companies. ChevronTexaco's policy also states that wages and of a country...Issues of pay and remuneration are determined in accor- salaries will be paid "in a manner that will maintain a competitive po- dance with local conditions. There are no globally agreed standards." sition sufficient to attract and retain high-caliber personnel, to provide incentive and to reward high-level performance." Likewise, Exxon Mobil states that its "overall compensation program is carefully designed to attract and retain talented men and women," Marathon, Odebrecht, and Total have no specific statement about and that in setting its salaries, it considers "industry standards, local wages or benefits. Galp Energia does not have a particular compensa- customs and legal requirements." Exxon Mobil further notes that its tion policy, but provides in its "Security for Workers" covenant that it benefits are "competitive with levels offered by other leading interna- will not "reduce the category of the workers or cut their salary, except tional petroleum and petrochemical companies." in cases foreseen in the law." Norsk Hydro also offers "total compensation that is competitive and Of the multi-stakeholder and non-corporate entity initiatives that address in accordance with good industry standards in the country concerned." the compensation issue, virtually all state that remuneration should be T H E O I L A N D G A S S E C T O R 7 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 8 at least industry standard. Some also focused on the "living wage" ver- and stipulate that employees must be given at least one day off in every sus "minimum wage" issue that was more at the forefront in the ap- seven. "Regular" working hours in the other industry sectors are al- parel and footwear sector. In contrast to a "minimum" wage, which is most always the lesser of 48 hours per week or domestic legal limits tied to legal standards, "livable" wages ensure that wages not only and overtime is typically no more than 12 hours per week and must be meet at least national legal or industry benchmark standards, but also voluntary and not demanded on a regular basis. are sufficient to meet basic needs. SA8000 states that the company Only two oil and gas companies surveyed provide specific caps on hours "shall ensure that wages paid for a standard working week shall al- of work in their codes of conduct. Shell guarantees that no employee ways meet at least legal or industry minimum standards and shall be "has to work more than 48 hours a week." Norsk Hydro states that sufficient to meet basic needs of personnel and to provide some dis- "under normal circumstances, on a weekly basis, an employee should cretionary income." not work in excess of 48 hours and 12 hours overtime, and be given a The Caux Roundtable provides that companies should provide "com- minimum of 24 hours continuous rest." Norsk Hydro also states that pensation that improves workers' living conditions," and Amnesty Inter- working hours should be in "accordance with local law or agreements." national's Principles provide that companies should ensure "adequate Most of the other oil and gas companies do not specifically address remuneration and benefits." The OECD Guidelines state that enter- hours of work, although those issues are frequently subsumed into prises should "observe standards of employment and industrial rela- statements on compensation and benefits. tions not less favourable than those observed by comparable employers in the host country." A few companies, such as Exxon Mobil, stipulate that they follow, at a minimum, all local legal requirements. Occidental states that "work Unlike the footwear and apparel sector, the oil and gas sector does not practices are consistent with responsible industry practices and local set benchmark criteria to determine whether facilities have complied customs," and Statoil states that "hours of work are in accordance with with compensation requirements--such as ensuring that employees the law or requirements in the different countries in which it operates." have access to understandable information about their wages and ben- efits and that legally mandated benefits are paid in full and in a timely Most of the non-corporate entities reviewed did not have specific state- manner. ments about hours of work, although the Principles for the Conduct of Inasmuch as there is an "emerging" trend to provide minimum wage Company Operations within the Minerals Industry provide that "com- and benefits to employees, it conforms with ILO Recommendation panies must realise that everyone has the right to rest and leisure, in- No. 116 on the Reduction of Hours of Work. cluding reasonable limitations of working hours and periodic holidays." SA8000 states that companies shall "comply with applicable laws and industry standards on working hours" that the normal workweek shall 2.2.4 Hours of Work not exceed 48 hours and overtime shall not exceed 12 hours. Again, due to the inherent differences between the extractive indus- Unlike the apparel and footwear sectors, which typically stipulate that tries and the previously surveyed industry sectors, virtually none of at least one day must be given off in every seven worked, virtually the oil and gas companies provide specific guidelines governing hours none of the oil and gas companies address this issue. of work for employees. This is in sharp contrast to the apparel and footwear companies, and multi-party organizations--virtually all of Based solely upon the information collected, the emerging trend with which cap combined work and overtime hours at 60 hours per week regard to hours of work is that they should at least meet minimum legal 8 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 9 standards or industry standards, and this trend therefore meets some location and for complying with all applicable anti-discrimination of the chief demands inherent in ILO Recommendation No. 116 on laws and regulations." Reduction of Hours of Work. That ILO Recommendation states in part In addition to proscribing discrimination on the basis of such "core" that hours of work should be at least the prevailing industry standard, characteristics as gender, race, religion, age, disability, nationality, although it also provides far more comprehensive rights than those and social or ethnic origin, the codes of conduct also give varying cov- guaranteed by most oil and gas companies. erage to other basic personal characteristics or beliefs. For instance, Eni provides that there will be no discrimination with respect to polit- 2.2.5 Non-Discrimination and Diversity ical opinions, Odebrecht includes "weight, height or physical condi- The codes of conduct for virtually all companies and multi-party or- tion," and ChevronTexaco, Occidental, and several others provide ganizations give some guarantees against non-discrimination. This is protection for sexual orientation. Marathon, and several other compa- a critical issue to many employees hired by extractive industries, par- nies, provides a list of protected categories, with the general catch-all ticularly if such companies are operating in nations that do not provide at the end "or other legally protected status." restrictions against certain types of discrimination in their domestic laws and regulations. These anti-discrimination guarantees vary in In addition to prohibiting any discrimination, many oil and gas com- coverage, however (e.g., whether solely for hiring and employment panies take the additional, pro-active step of specifically encouraging practices or also for such practices as advancement and retirement), initiatives that help to diversify their workplaces. Many of these com- and breadth (e.g., governing solely "core" personal characteristics panies adopt general policies along the line of ChevronTexaco, which such as age, race, and gender, or also including less traditional char- provides that it "has an inclusive work environment and actively em- acteristics such as sexual orientation and political opinion). braces a diversity of people, ideas, talents and experiences." Marathon "promotes diversity within our workforce" because "diversity of peo- The codes of virtually all companies prohibit discrimination in hiring ple and ideas will provide the company with a business advantage." and employment practices, and many of these companies define "em- Norsk Hydro "regards diversity as an important source of innovation ployment practices" to include wages, benefits, training, advancement, and healthy decision-making" and "sets diversity targets in relation to termination, demotion, and retirement. ChevronTexaco notes that it is gender, experience, age, and cultural background." Shell is unique in "committed to following the laws, within and outside the U.S., pro- providing follow-up mechanisms to ensure diversity in its statement hibiting discrimination in employment matters." Exxon Mobil has a of principles, as it "has developed tools to encourage and track similar policy to "provide equal employment opportunity in confor- progress in the area of diversity and equal opportunity." mance with all applicable laws and regulations to individuals who are qualified to perform job requirements." Some oil and gas companies offer explicit provisions on gender equal- ity. Eni states that "men and women must receive equal salary treat- Exxon Mobil also mandates that its managers and supervisors bear re- ment for work of equal value, and the principles of equal opportunity sponsibility for "implementing and administering the policy against must be applied." Galp Energia provides for "equality of rights for discrimination, for maintaining a work environment free from unlaw- men and women not only when they start working for the company but ful discrimination, and for promptly identifying and resolving any also when they are promoted." problem area regarding equal employment opportunity." In a similar vein, Occidental states that "every manager is responsible for the com- Statoil gives specific breakdowns of the number of women employed, munication, implementation, and enforcement of this policy at each including 15% in management positions in the home country at all T H E O I L A N D G A S S E C T O R 9 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 10 levels of the company, although its goal is to raise that figure to 20%. conditions on grounds of race, color, gender, religion, national origin, The percentage of women employed worldwide by Statoil is 31%, and social origin, or political opinions. They also conform in some part to 23% of its managerial positions are filled by women. Statoil also be- the commitments expressed in ILO Convention No. 100, Equal Remu- lieves "greater diversity will help us thrive in a business environment neration, concerning equal pay for equal work, regardless of gender. which is increasingly complex and global." Many of the code provisions also match commitments in the UN Norms, On the question of racial or ethnic diversity, some companies also put in which state that transnational corporations shall "ensure equality of op- place affirmative action policies in an effort to remedy any societal portunity and treatment, for the purpose of elimination of discrimina- legacy of discrimination. BP states that it "will practise inclusion by elim- tion based on race, color, sex, religion, political opinion, nationality, inating intentional and unintentional exclusionary behaviours." Chevron- social origin, indigenous status, disability, age or other status of the in- Texaco is one of the few companies surveyed that specifically references dividual unrelated to the individual's ability to perform his/her job." "affirmative action programs designed to provide equal employment op- portunity for women and members of racial and ethnic minority groups, qualified disabled persons, and Vietnam and disabled veterans." 2.2.6 Harassment, Abuse, and Disciplinary Action Of note in the principles of the non-corporate entities, ARPEL has cre- Virtually all of the oil and gas companies analyzed have statements pro- ated a Gender Analysis Working Group to enhance its members com- hibiting employee harassment and abuse, although fewer are specific panies' "expertise and experience in gender analysis" and "promote about the kinds of behavior that they will not tolerate, such as sexually equal access of both men and women" in the oil and gas sector. SAPIA abusive or exploitative behavior. The companies that do address ha- states that "upliftment is a top priority" and "one of the most signifi- rassment issues, however, are quite detailed in their definitions of com- cant efforts is Black Economic Empowerment (BEE) through black pany policy and such definitions frequently track legal requirements and ownership and participation in the oil industry." precedents in the nation in which the company is incorporated. Thus, the emerging trend with regard to anti-discrimination measures Exxon Mobil "assures a work environment free from sexual, racial, or advocates opportunities based primarily on merit. In determining other harassment," and uses a distinctly U.S. legal definition of ha- whether the companies' anti-discrimination and diversity mechanisms rassment, in part stating that "harassment is any inappropriate conduct conform to international standards, some companies cite their adher- which has the purpose or effect of creating an intimidating, hostile, or ence to specific international standards. Eni, for instance, commits to offensive work environment" or "unreasonably interfering with an in- operating within the framework of the UDHR, the Fundamental Con- dividual's work performance." Marathon has a similarly worded pol- ventions of the ILO, and the OECD Guidelines. icy, which states that it will not tolerate conduct "that creates an unwelcome or uncomfortable situation or hostile work environment, There is no dearth of law proscribing racial and ethnic anti-discrimi- such as unwelcome advances or requests for sexual favors, inappro- nation policies. Pursuant to the UDHR, "Everyone is entitled to all the priate comments, jokes, intimidation, bullying, or physical contact." rights and freedoms set forth in this Declaration, without distinction of Occidental offers a comprehensively worded statement that details its any kind, such as race, color, sex, language, religion, political or other prohibition of any form of sexual harassment. opinion, national or social origin, property, birth or other status." Many of the codes analyzed conform in some part to ILO Convention No. 111 Eni provides a more general statement, which provides that "there on Discrimination in Employment and Occupation, which also pro- shall be no harassment in personal relationships either inside or outside hibits discrimination in access to employment, training, and working the company." It defines harassment as "the creation of an intimidating, 10 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 11 hostile or isolating environment for one or more employee; unjustified There are few international standards on workplace harassment or interference in the work performed by others; and the placing of ob- abuse, although the policies of most of the companies analyzed largely stacles in the way of the work prospects and expectations of others comply with the Commentary to the UN Norms, which provides that merely for reasons of personal competitiveness." Eni also specifically "no worker shall be subject to direct or indirect physical, sexual, racial, prohibits sexual harassment. psychological, verbal or any other discriminatory form of harassment or abuse." Most company policies do not, however, include other por- ChevronTexaco is committed to maintaining a work environment in tions of this same Commentary, which provides that "no worker shall which employees may perform their jobs without physical or verbal be subject to intimidation or degrading treatment or be disciplined harassment because of race, sex, marital status and a variety of other without fair procedures." factors. Odebrecht details some aspects of harassment which go be- yond "typically" defined forms. It provides that "no intrusion into peo- ple's private lives will be allowed in or outside of the workplace" and 2.2.7 Freedom of Association and Collective Bargaining that "the monitoring of interception of telephone calls, correspondence The issues of freedom of association and collective bargaining are or emails is not countenanced." among the most important labor rights standards that oil and gas com- panies address. They are difficult, in large part, because national laws Some companies also discuss disciplinary procedures for harassment. differ dramatically regarding the protection of these guarantees. Some Exxon Mobil stipulates that "all employees, including supervisors and codes of conduct reflect the inherent difficulty of enforcing these managers, will be subject to disciplinary action up to and including rights by stipulating that they are protected to the extent possible under termination for any act of harassment." Norsk Hydro states that a vi- local law. As a result, many company and multi-party codes refer gen- olation of its code of conduct "will not be tolerated and may in accor- erally to "recognizing and respecting lawful rights" of freedom of as- dance with relevant legislation lead to internal disciplinary actions, sociation and collective bargaining. dismissal or even criminal prosecution." Occidental states that "any violator" of its harassment policy is subject to discipline, "up to and Statoil addresses this inherent conflict directly: "Freedom of associa- including termination of employment." tion is not guaranteed in all countries where Statoil is present. Neither is the right to collective bargaining. We have nevertheless seen to it Most of the non-corporate entities surveyed had no specific policies that all our employees have a voice in the workplace, whether through on harassment, abuse, or disciplinary action. Those that did were not councils, committees, or general assemblies." Statoil is "committed to tailored to the oil and gas sector. For example, Amnesty International a set of core labour standards which we believe should be universally has a policy that companies should "include measures to deal with sex- applied, regardless of a country's level of development, including free- ual or racial harassment, and to prohibit national, racial, or religious dom of association and collective bargaining." Statoil is also unique, and hatred." Amnesty also states that companies "should not engage in or an industry leader, in encouraging "feedback from external stakehold- support the use of corporal punishment, mental or physical coercion, ers on issues of labor relations and standards" and forming an "informa- or verbal abuse." tion-sharing agreement with the International Federation of Chemical, Energy, Mines and General Workers Unions (ICEM)." Interestingly, few if any of the oil and gas companies, in marked con- trast to the companies in other industry sectors, offer specific policies Shell also proactively addresses labor organizing, and provides more about corporal punishment, or coercive, exploitative, or psychologi- specifics than virtually any other company about the nature of its em- cally abusive behavior. ployees' collective bargaining arrangements. Shell states that it "has T H E O I L A N D G A S S E C T O R 11 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 12 a number of ways to protect employee welfare and enable staff to dis- UN Global Compact, which provides that [b]usinesses should uphold cuss employment issues." Shell does "not stop any employee from the freedom of association and the effective recognition of the right to joining a union and almost a fifth of Shell employees are estimated to collective bargaining." be members." In many countries, "unions discuss and negotiate with Some companies specifically adhere to some of some of these interna- Shell companies on employment conditions." tional standards. Eni, for instance, commits to operating within the Eni provides unambiguously that "all workers are entitled to belong to framework of the UDHR, the Fundamental Conventions of the ILO, and trade unions of their choice and to benefit from fundamental union rights," the OECD Guidelines, with particular reference to the areas concerning and Norsk Hydro "recognizes the right to collective bargaining." Galp En- freedom of association. ChevronTexaco, in accordance with the Sulli- ergia "allows free association in trade unions and collective bargaining." van Principles, "respects employees' voluntary freedom of association." BP states that it "recognizes, consistent with local legislation, the right of every employee to form or join trade unions." It also commits to working in "good faith with trade unions and other bodies that our em- 2.2.8 Labor/Management Relations, Training, and Education The categories of labor/management relations and training and edu- ployees collectively choose to represent them within the appropriate cation were added to the extractive sector matrices even though they local legal framework." Occidental has a more general policy that respects were not included in the matrices for the previous industry sectors. "employees' voluntary freedom of association with respect to causes, or- These categories were added because many mining, oil, and gas com- ganizations or political parties they may wish to support or join." panies provide statements on these subjects to augment their commit- Exxon Mobil, Marathon, and Odebrecht have no stated policies on ments regarding freedom of association and collective bargaining. freedom of association or collective bargaining. Total's policy is very Due perhaps to the fact that the extractive companies play a dominant general and ambiguous. role in the communities in which they operate, unlike many light man- SA8000 states that where rights are restricted under law, a company ufacturing companies, they have frequently had to draft and imple- should facilitate a parallel means of organizing and seek to ensure that ment more comprehensive labor policies. Thus, unlike other industry union representatives are not subject to discrimination and have ac- sectors, extractive companies are particularly concerned with sustain- cess to members in the workplace. able development activities in order to provide them with a long-term workforce. This focus on sustainable development also gives extrac- Pursuant to the UDHR, "Everyone has the right to freedom of peace- tive firms more of an incentive to invest in activities like training and ful assembly and association." Art. 20(1), and "the right to form and education. join trade unions..." Art. 23(4). ILO Convention No. 87, concerning Freedom of Association and the Right to Organize, establishes the There are not many international standards by which to compare these right of all workers and employers to join organizations of their own statements on labor/management relations or training and education. choosing and lays down a series of guarantees for the free functioning The standards that are most on par are probably those contained in the of such organizations. ILO Convention No. 98 provides for the Right ILO Tripartite Declaration. to Organize and Collective Bargaining. Among the companies taking a leadership role in articulating such Although most codes of conduct do not come close to providing the policies, many offer unusual initiatives to educate and provide further rights inherent in the ILO Conventions with regard to freedom of as- opportunities for their employees. For instance, Norsk Hydro and Eni sociation, the emerging trend is close to fulfilling the mandate of the provide university and post-university training, and Odebrecht provides 12 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 13 classes and partnerships. BP and Occidental provide mentoring and The Voluntary Principles acknowledge in their preamble the preemi- feedback programs and Statoil "encourages feedback from external nence of the Universal Declaration. They urge companies to "recog- stakeholders on issues of labour relations and standards." Shell spent nize a commitment to act in a manner consistent with the laws of the almost $96 million in 2002 on social investment programs; more than countries within which they are present, to be mindful of the highest a quarter of that was spent on education and skills development. applicable international standards, and to promote the observance of applicable international law enforcement principles." With regard to Both Norsk Hydro and Occidental put a premium on training local the latter, conformity with the UN Code of Conduct for Law Enforce- hires at their operations. Norsk Hydro trained "a whole new genera- ment Officials and the UN Basic Principles on the Use of Force and tion of Angolan oil experts to lend their ideas and skills to the indus- Firearms by Law Enforcement Officials is emphasized. try." Occidental's "overseas operations have ongoing, active policies in place to train national employees for jobs at all levels and to in- The Voluntary Principles address three sets of issues: Risk Assess- crease local hiring and reduce expatriate staffing." Technical training ment; Interactions Between Companies and Public Security; and In- is also provided to allow employees to "stay up-to-date in their fields teractions Between Companies and Private Security. The Risk of work." Assessment of the Voluntary Principles identifies key human rights "factors" to be taken into account as security arrangements are Some of the multi-stakeholder groups, including ARPEL, AIP, Caux planned, including: identification of security risks; potential for vio- Roundtable, OECD and others, maintain policies encouraging and lence; the human rights records of public and private security forces; strengthening the education and training of employees. strength of the rule of law; conflict analysis; and equipment transfers. 2.2.9 Security Practices Thus, the companies that adhere to the Voluntary Principles have al- Security is perhaps the single most important human rights issue to ex- ready emerged as industry leaders, by virtue of their recognition of the tractive companies. Statoil makes this point quite succinctly: "the role of human rights issues in security matters and their implementa- biggest blow to the reputation of oil companies over the past few years tion of the Voluntary Principles. BP, for instance, stipulates that it es- has probably been their association with the security forces assigned tablishes "transparent relationships and arrangements with public to protect their interest in conflict-prone or conflict-ridden countries." forces and security contractors, with suitable contractual conditions of engagement that include safeguards to prevent human abuses." For this issue, it is useful to examine the international standard first, because it is relatively clear, concise, and limited, and then to consider The Voluntary Principles also stipulate that "companies that provide each of the companies' security practices. equipment to public security should take all appropriate and lawful measures to mitigate any foreseeable negative consequences, includ- The U.S. and U.K. governments announced the Voluntary Principles ing human rights abuses and violations of international humanitarian on Security and Human Rights in December 2000, which have since law." This principle responds to the real possibility that companies gained recognition as the emerging international standard addressing may be compelled to provide equipment to state security forces that the human rights responsibilities faced by extractive companies in could then be used in ways that would make the company complicit in their security arrangements around the world. BP and ChevronTexaco human rights abuses. were among the seven companies and nine NGOs that participated in the creation of the Voluntary Principles, and among the companies in Exxon Mobil developed an "Integrated Security Management" program this analysis, Exxon Mobil and Occidental are also participants. that "provides a structural approach to protecting personnel, information T H E O I L A N D G A S S E C T O R 13 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 14 and facilities without compromising the rights of legitimate public in- The Principles for the Conduct of Company Operations within the terests" and "is consistent with the UN Basic Principles on the Use of Minerals Industry state that companies should "review all policies and Force and Firearms by Law Enforcement Officials, the UN Code of practices relating to private security employees" and that companies Conduct for Law Enforcement Officials, and the International Human "should not operate in areas where such operations require the use of Rights Standard for Law Enforcement." Occidental, another partici- military forces or excessive security in order to maintain the operation." pant in the Voluntary Principles, is awaiting approval of its "corporate human rights and security practices policy." 2.3 Findings Regarding Environmental Standards Of those companies that do not participate in the Voluntary Principles, many publish statements regarding security matters. (Companies are In the oil and gas sector, many of the statements of principle and codes ineligible to officially participate in the Voluntary Principles if the of conduct provide general, over-arching statements supporting a country in which they are incorporated is not yet participating.) Sta- "safe and healthy working environment" and compliance with all ap- toil, for instance, states that "a place to start is with the schooling of plicable laws. These general policy statements with regard to envi- security forces on the basis of guidelines such as the Voluntary Prin- ronmental issues, including health and safety matters, are designated ciples," thereby endorsing the Voluntary Principles even though it is for all codes in the first column of the environmental matrix. not yet able to officially participate. Environmental commitments, however, are less often found in com- Eni is "constantly working to promote and maintain relations based on pany codes of conduct than in the documents or policies that describe transparency and on consultation with the local communities" and the companies' commitments on an ex post facto basis (e.g., Annual "pursues a security policy aimed at combining the effectiveness of the Reports, Statements of Emissions and Waste, etc.). This material was actions with the full respect of the human and social rights of the pop- isolated and grouped into the appropriate categories on the matrices, ulation in the countries in which the Company operates." Shell states as inspired by the GRI Guidelines. that it balances the "need to protect our people, assets, and sharehold- Some of these categories, such as those on "suppliers" or "transport," ers' investments--sometimes with armed guards" [--without] "un- are not as applicable to the oil and gas sector as other industries. As a dermining the human rights in the countries where we operate." result, although the "international standard" for these categories was Marathon, Galp Energia, and Odebrecht have no articulated policies still included in the final row of the matrix, there was not enough in- on security and human rights issues. Total does not address security formation from the codes to determine whether there were emerging matters. trends in these categories. In the following environmental areas, how- ever, sufficient information was gleaned from the codes to highlight Of the multi-stakeholder or non-corporate entities, SAPIA's policy is key practices, as well as emerging trends. notable for "the need for thorough, all embracing, threat and risk as- sessments leading to effective security and contingency planning, re- mains of great importance." Amnesty International's Principles stipulate 2.3.1 General Policy Statement and EMS Standards that "all companies should ensure that any security arrangements pro- One clear trend apparent in all the codes is that companies increasingly tect human rights and are consistent with international standards for law use and implement EMSs. As the World Bank/IFC states in its Hand- enforcement," which should include "measures to prevent excessive book, EMSs such as ISO 14001 are seen as mechanisms for achieving force, as well as torture or cruel, inhuman or degrading treatment." improvements in environmental performance and for supporting the 14 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 15 trade prospects of "clean" companies. Additionally, manufacturers al- system designed to maintain compliance with all applicable health, most uniformly mandate compliance with any applicable and relevant safety and environmental laws and regulations." Galp Energia has an environmental regulations and laws, and almost uniformly mandate "Environment, Quality and Safety Management System" that supports the provision of a safe and healthy working environment. its Environment, Quality, Safety and Health Policy. There is also an emerging trend among the codes of conduct analyzed Total has a much more general policy which provides that "appropri- that, for those companies with an EMS, the system should allow the ate safety, environment and quality management systems for each company to incorporate environmental matters into its business deci- business activity will undergo regular evaluation involving measure- sions. ISO 14001 is the recognized international standard for EMSs. ment of performance." Eni uses ISO 14001 standards for EMS requirements, and Norsk Several of the multi-party or non-corporate entities also make refer- Hydro uses ISO 14001 "as a guideline" to "integrate environmental ence to either EMS or broader management systems to evaluate envi- objectives and targets in business planning." ronmental standards, including ARPEL, AIP, and ICC. The CERES Principles are included in this matrix even though they were not in the Some companies institutionalize EMS programs, such as Chevron- human rights and labor rights matrix, because they refer almost exclu- Texaco's "rigorous Operational Excellent Management System for sively to environmental factors. The CERES Principles have a strong managing safety, health and environmental affairs." This system "as- general policy statement and makes reference to an EMS regime. sesses and manages risk to employees, contractors, the public and the environment from its operations and products" and employees are The IFC Guidelines state that "EMSs such as ISO 14000 are seen as "held accountable for results against aggressive environmental per- mechanisms for achieving improvements in environmental perfor- formance targets." mance and for supporting the trade prospects of `clean' companies." Similarly, Exxon Mobil's program, Operations Integrity Management System (OIMS), "ensure[s] that environmental considerations are ad- 2.3.2 Health and Safety Occupational safety and health issues are of particular concern to com- dressed in all operations." OIMS meets "the intent and requirement of panies and multi-party organizations engaged in the oil and gas sec- ISO 14001." Shell states that "HSE management systems are in place tors. In addition to general statements about health and safety matters and our programme to certify major installations to the ISO 14001 in most companies' guiding principles statements, virtually all MNEs standard is virtually complete...The challenge now is to implement maintain very comprehensive and detailed Health, Safety, and Envi- such systems in all the acquisitions." ronment (HSE) guidelines and policies. These were drawn from when In 2002, Statoil's governing system for overall management and control applicable, and examples from HSE materials are included in the ma- was certified to be in compliance with the ISO 9001 standard. Statoil trices. The examples of HSE policies chosen for inclusion in the ma- is uniquely transparent, as it lists its units already certified as either ISO trices were all fairly general in their applicability. More specific HSE 9001--or ISO 14001--compliant on its Internet site. guidelines, applicable only to certain sub-sets of the oil and gas in- dustry (e.g., risks only encountered in onshore exploration, or when Marathon has formed "an Emergency Management Team, composed of drilling), were not included in this narrative. senior management" which oversees the "response to any major emer- gency environmental incident involving Marathon." Occidental states Perhaps the most critical issue with regard to HSE is whether compa- that each "HSE program must, at a minimum, include a management nies and other entities only apply applicable domestic law, which is T H E O I L A N D G A S S E C T O R 15 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 16 frequently quite weak on these issues and provides for few health- at the highest levels in the company." Norsk Hydro addresses the issue related safeguards in many developing nations, or whether they adhere of integrating new units into its safety program, stating that "recently to some form of international or best practices. There appears to be an integrated operations achieve a standard of safety, on par with the av- emerging consensus that most of the companies, and certainly those erage for the company, after two or three years. For 2003, the target is that are multinational in scope, utilize best international standards. for a further 20% improvement." BP, Eni, ChevronTexaco, Exxon Mobil, and others all demand that their Many companies, including BP, ChevronTexaco, and Exxon Mobil HSE practices follow best international standards. In addressing this have also committed to designing new facilities and modifying existing point, BP states that it complies "fully with all legal requirements and facilities so that they are constructed to enable safe, secure, healthy, and meets or exceeds [its] HSE expectations wherever [it] operates in the environmentally sound performance throughout their operational lives. world." ChevronTexaco recognizes the sometimes inherent distinctions between the promulgation and enforcement of laws, and states that it In addition to companies, many multi-party or non-corporate entities, "commits to compliance with the spirit and letter of all environmental, including API, ARPEL, and CERES, call for in their guiding princi- health and safety laws and regulations, regardless of the degree of en- ples "safe and healthy working environments." SA8000 provides spe- forcement." Exxon Mobil states that it will comply with all applicable cific health and safety guidelines by indicating that steps should be laws and regulations, "and apply responsible standards where laws and taken to prevent accidents and injury; regular health and safety train- regulations do not exist" and goes an additional step in committing to ing should be conducted for workers; access should be given to clean "work with government agencies and others to develop responsible toilet facilities and potable water; sanitary food storage should be pro- laws, regulations and standards based on sound science and considera- vided; and a senior manager should be responsible for health and safety. tion of risk." Exxon Mobil also commits to "appropriate monitoring of Although most corporate codes do not reference international bench- its potentially affected employees" with regard to HSE issues. marks, the key ILO standards include Convention No. 155 on Occu- There is a clear emerging trend among all oil and gas companies to pational Safety and Health and Recommendation No. 164, also on focus on the prevention of negative HSE issues, rather than just treat- Occupational Safety and Health. The IFC's Handbook states that em- ment. For instance, one of BP's "guiding principles" of health and ployers should be pro-active and preventive in their provisions, by safety is that "all accidents and occupational illnesses are pre- identifying hazards as well as through evaluating, monitoring, and ventable." ChevronTexaco, Shell, Statoil, Marathon, Galp Energia, controlling work-related risks. It also states that employers should pro- and others similarly emphasize prevention and all state that they seek vide appropriate occupational health and safety training for employ- goals of "zero-incidents" or "zero occupational illnesses." ees and be responsible for planning, implementing, and monitoring Of particular note, Eni includes labor issues in its HSE policy, stipu- programs and systems required to ensure occupational health and lating that health and safety conditions and practices must be "agreed safety standards on their premises. [to be] trade unions" and that "employees, trade unions, authorities The Handbook also provides a range of general health and safety and the general public" must be informed of results with regard to guidelines, including that installations should be designed and oper- HSE issues. Eni expanded its definition of health care to include both ated to protect the health and safety of employees and the community physical and psychological matters. in such areas as air quality, noise, confined spaces, general health, gen- BP introduced "explicit improvement objectives for safety in the per- eral safety, training, occupational health, and safety monitoring. The formance contracts" of its executives "in order to ensure commitment emerging trend among companies is that many of the Handbook's 16 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 17 broad parameters on health and safety issues are addressed in their ing principles, including API, ARPEL, AIP, ICC, CERES, and the codes of conduct or guiding principles. OECD Guidelines. The World Bank/IFC Guidelines provide that where feasible compa- 2.3.3 Energy nies should choose energy-efficient and environmentally sound Of particular relevance inasmuch as the oil and gas sector is an energy- processes. related industry, is a trend among virtually all companies to promote energy efficiency. While most companies provide general statements regarding their commitment to energy-efficient operations, in part 2.3.4 Water through their use of improved technology, some also give specific ex- For the companies with specific policies regarding the use of water, amples of their policies and practices. the overall trend is toward a commitment to reduce water use in oper- Eni states that operations should be carried out "according to advanced ations and to treat water used in operations before its re-release. criteria for the protection of the environment and energy efficiency." BP has one of the most detailed water practices. In 2002, it developed BP recognizes the need "to reinvent the energy industry" and "go be- a "new approach to global water issues and to sustainable water man- yond petroleum." ChevronTexaco has a four-part plan of action as a agement" which entails using reclaimed water at many plants. It also result of "concerns about climate change," including reducing green- phased out the discharge of oil-based drilling muds, which significantly house-gas emissions, investing in research and development, and pur- reduced the amount of synthetic-based fluids discharged into water. suing innovative energy technologies. Exxon Mobil has developed a "Global Energy Management System" to identify opportunities to re- Shell began monitoring the use of potable water, surface water, and duce energy use. Shell states that "efficient use of natural resources... ground water in 2001, and started reporting this data in 2002. Statoil reduces our costs and respects the needs of future generations." aims to eliminate all harmful discharges to the sea from its operations on the Norwegian continental shelf by 2005. Total has launched a pro- As examples of particular energy efficiency programs, BP touts that it gram to improve the quality of its wastewater discharges by 25% over is now able to quantify the benefits of lower-carbon and energy-saving five years. More generally, Occidental commits to "conserve the use products and that it is testing these systems on a selected range of its of water" in its facilities. products. Exxon Mobil uses cogeneration facilities that can supply 2,875 megawatts of electricity and reduce carbon dioxide emissions Few of the multi-party or non-corporate entities analyzed provided state- by almost seven million tons a year. Norsk Hydro is "concentrating on ments on water policy, with the exception of CERES and the Principles hydrogen as an energy carrier" and continues to work on developing for the Conduct of Company Operations within the Minerals Industry. renewable energy sources such as "water, wind, and wave power." Statoil established a new business cluster in 2001 to pursue the devel- The World Bank/IFC Guidelines provide extensive water pollution opment of "clean energy bearers," working primarily on renewable standards and urge conservation of water resources. The specific sources of energy. Total has investigated "wind and photovoltaic energy, guidelines regarding Onshore Oil and Gas Development highlight the as well as the use of hydrogen for energy purposes." fact that the main wastes associated with such production are drilling- waste fluids or muds, drilling-waste solids, produced water, and Marathon and Odebrecht do not present any specific policies on energy. volatile organize compounds. It advocates that in drilling operations Many of the multi-party and non-corporate entities also offer general "the use of fresh water should be minimized by maximizing the use of statements about energy efficiency in their codes of conduct or guid- drilling mud pond decant water." T H E O I L A N D G A S S E C T O R 17 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 18 2.3.5 Biodiversity Several multi-party and non-corporate entities, most notably API and The issue of biodiversity arises somewhat regularly in the codes of CERES, also maintain policies regarding biodiversity, most of which conduct of oil and gas companies, and if there is an emerging trend, it advocate practices to help protect and preserve habitats. is simply that companies are now striving to incorporate sensitivity for Although there are few World Bank/IFC Guidelines regarding biodi- biodiversity issues into their business operations. Although some com- versity that specifically apply to onshore oil and gas development, the panies had no specifically articulated statement on biodiversity issues, Handbook has lengthy measures devoted to conserving national habi- those that did focused on structuring their operations to account for the tats and ensuring the protection of sustainable development. The IFC impact on sensitive species. "supports the protection, maintenance, and rehabilitation of natural Shell claims that it was the "first energy company to establish a Bio- habitats and their functions in its project financing and advisory ac- diversity Standard," which "commits all Shell companies to respect tivities" and "expects project sponsors to apply a precautionary ap- protected areas, maintain ecosystems and contribute to conservation." proach to natural resource management to ensure opportunities for ChevronTexaco formed an "Energy and Biodiversity Initiative," and environmentally sustainable development." The IFC will not support has established a record in protecting the marine ecosystem, "includ- projects that, in its opinion, involve the significant conversion or ing the great humpback whales." This even includes "rescheduling or degradation of critical natural habitats. In deciding whether to support suspending seismic work to accommodate the whales and nesting sea a project with potential adverse impacts on a natural habitat, the IFC turtles." It is also a member of the IPIECA-OGP Biodiversity Work- takes into account the project sponsor's ability to implement appro- ing Group, and uses that relationship to promote "industry review." priate conservation and mitigation measures. Statoil is also a participant in the Energy and Biodiversity Initiative and, through that initiative, surveys natural resources "before starting operations in a new area," including exploration drilling or installing 2.3.6 Emissions pipelines and land-based plants. The emerging trend with regard to emissions is the general recogni- tion of the need to reduce greenhouse gas emissions and, more specif- Occidental's "Conservation Management Plan" has set aside 7,800 ically, to reduce or completely eliminate gas flaring. acres to preserve habitat and help promote the recovery of endangered and threatened species. Norsk Hydro recognizes that its operations in Most companies maintain policies regarding the reduction of green- some vulnerable areas gives it a "special responsibility to help pre- house gases and many make significant and tangible progress in re- serve biological diversity in these areas." Total has created a corpo- ducing their gas emissions. BP reduced its operation greenhouse gas rate foundation that helps to maintain marine biodiversity and protect emissions by 10% from its 1990 baseline and Norsk Hydro reduced its ecosystems. climate gas emissions by about 15% since 1990. Shell also "beat[en] [its] target to reduce emissions to 10% below its 1990 baseline in Eni states more generally that it reaffirms its commitment to several 2002" by reducing GHG emissions. international agreements, but particularly with respect to natural bio- diversities. BP supports work already undertaken in "developing a Less specifically, Eni established an inter-company working group re- consistent approach to identification and designation of protected garding the reduction of greenhouse gases and expanded the use of areas." Exxon Mobil has a "broad array of [biodiversity] efforts un- natural gas as the fossil source with the lowest CO2 emissions. derway." Galp Energia supports the Second National Conference on ChevronTexaco committed to "zero flare" development in an effort to the Conservation of Nature. reduce greenhouse gases, Exxon Mobil established the Global Energy 18 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 19 Management System to help improve energy efficiency and reduce With regard to the oil and gas sector, the World Bank/IFC states in its greenhouse gas emissions, and Occidental participates in the API ef- Handbook that "pollution prevention programs should focus on re- fort to reduce emissions. ducing the impacts of wastewater discharges, oil spills, and soil cont- amination and on minimizing air emissions." Statoil's policy "does not accept permanent production flaring, i.e., continuous flaring for gas disposal." The company set a target to These goals are shared by some of the companies analyzed. Chevron- achieve, by 2010, an annual reduction of 1.5 million tons of CO2 Texaco's goal is to "continually improve processes to minimize pol- equivalent on an equity basis. Total pledged to cut emissions from oil lution and waste." Exxon Mobil conducts research efforts on and gas operations by 20% per metric ton of oil produced from the pe- dispersant and bioremediation techniques to expand its abilities to re- riod from 1990 to 2005. duce the impact of oil spills and speed the recovery of impacted envi- ronments. Norsk Hydro minimizes waste and ensures "safe Most of the oil and gas-focused multi-party or non-private corporate destruction or disposal of production waste where reuse or recycling entities maintain policies emphasizing the need to reduce overall emis- are not practicable" Statoil's target is to "eliminate use and discharge sion generation. AIP joined the Australian government's Greenhouse of hazardous substances." Challenge and created a voluntary Facilitative Agreement with the gov- ernment. Other multi-party groups set goals for the reduction of flaring. Shell's long-term target is to reduce spills by more than a third by 2007, which will be achieved primarily "through further upgrading [of There are extensive World Bank and IFC Guidelines regarding emissions its] pipeline systems and continued engagement with communities to limits and they support "a number of efforts to help...client countries reduce spills from sabotage." Since 1999, BP has reduced the number reduce emissions of greenhouse gases through measures such as pro- of its oil spills by over 30%. moting energy efficiency and increasing the use of renewable energy." As with the issue of emissions, most of the oil and gas-focused multi- With regard to onshore oil and gas development, the Handbook states party organizations have policies on pollution control and hazardous that "emissions levels for the design and operation of each project must substances. The IFC has a host of general guidelines about the pro- be established through the environmental impact assessment (EIA) duction, handling, storing, transporting, and disposal of hazardous ma- process on the basis of country legislation" and the Handbook, as applied terials, and also establishes significant requirements under the IFC to local conditions. The emissions levels selected must also be justified Hazardous Materials Management Guidelines. in the EIA and acceptable to the World Bank Group. Specific levels are stipulated in the Handbook for such areas as air emissions, liquid efflu- With regard to onshore oil and gas development, the World Bank/IFC ents, and ambient noise, which are typically acceptable to the World Handbook recommends the "implementation of cleaner production Bank. These emission levels can be consistently achieved by well-de- processes and pollution prevention measures" which can "yield both signed, well-operated, and well-maintained pollution control systems. economic and environmental benefits." In drilling operations, the "use of fresh water should be minimized by maximizing the use of drilling mud pond decant water." 2.3.7 Pollution Control and Hazardous Substances The emerging trend regarding pollution control and hazardous sub- Another international standard, though one which none of the codes stances is to reduce hazardous waste release and oil spill incidence and cite specifically, is the Basel Convention on the Control of Trans- institute oil spill prevention and response programs. Many of these pro- Boundary Movements of Hazardous Wastes and their Disposal, which grams are covered in greater depth in Section 2.3.10 on "Transport." works to reduce the movement of hazardous wastes. T H E O I L A N D G A S S E C T O R 19 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 20 2.3.8 Waste Management 2.3.9 Suppliers With regard to waste, there is an emerging trend among codes of con- This category of the matrix distills and highlights the policies of the duct and guiding principles to promote waste reduction and research various analyzed companies regarding the applicability of their and implement recycling programs. codes of conduct to suppliers or others in the supply chain, but not to direct employees of the companies. The material in this category BP monitors and manages discharges of chemicals and other materi- is tailored solely to the applicability of environmental policies to als into water, with the aim of moving toward "no damage to the en- suppliers, whereas the "Third Party Applicability" category in the vironment." Exxon Mobil's policy is to control emissions and wastes socio-economic matrix is more general in the scope of the policies "to below harmful levels" and "design, operate, and maintain facili- analyzed. ties to this end." Marathon seeks the "reduction and prevention of waste," and Norsk Hydro "encourages reuse and recycling of [its] Due to the lack of significant information, it is difficult to determine products." whether there is an emerging trend in this area, but from the little in- formation obtained, companies try to seek partners that have policies Occidental commits to continuing to reduce waste "through the use of consistent with their own. Although there are no applicable interna- source reduction, recycle/reuse and treatment techniques." Galp En- tional standards to which to compare these efforts, particularly with ergia pursues an "Integrated Industrial Waste Management Plan," specific regard to environmental measures, several companies have which includes the construction of temporary storage areas of waste adopted policies regarding the commitments of suppliers. at refineries and depots. Norsk Hydro addresses its suppliers' environmental challenges and Total incorporates waste reduction into all new process designs and commits to "influence [its] partners to perform in accordance with [its] prioritizes the recycling of by-products. Statoil regards waste "as a re- policy." Norsk Hydro "emphasizes care for the environment in [its] source and treated in the following order of priority: re-use, recycling, selection of suppliers." Total "expects suppliers to adhere to a code of energy recovery and deposition of residual waste. Waste sorting shall conduct equivalent to its own" and it favors the selection of partners be based on regional opportunities." Eni is developing technologies "on the basis of their ability to comply with its policy on safety, health, for "recovery and recycling of plastic materials." environment and quality." As with the other pollution-oriented sub-categories, many of the More generally, Shell states that the ability of suppliers to promote its multi-party organizations also promote pollution control policies. General Business Principles effectively will be "an important factor" API commits to reducing overall waste generation, ARPEL to prod- in its decision to enter into or remain in relationships with those sup- uct recycling, and ICC to the safe and responsible disposal of residual pliers. BP makes contractors and suppliers aware "of the company's wastes. commitments and expectations, and of their responsibilities in imple- The IFC Guidelines provide that project sponsors must recycle or reclaim menting them." Eni's policy is that "employees shall require the third materials where possible and, if not practical, wastes must be disposed parties to respect the obligations in the Code relevant to their activi- of in an environmentally acceptable manner. With particular regard to ties...and adopt proper internal actions...in the event that any third onshore oil and gas production, the "main wastes of environmental con- party should fail to comply with the Code." Also, with regard to ac- cern" are "drilling-waste fluids or muds, drilling-waste solids, produced tivities assigned to contractors, the company "shall formulate suitable water, and volatile organic compounds. The drilling-waste muds may be guarantees against possible violations within the framework of exist- freshwater gel, salt water, or oil invert-based systems." ing contractual relations." 20 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 21 Uniquely, Statoil aims "to establish a group policy on reputational due In a novel approach to transportation-related issues, Galp Energia in- diligence" this year to "address pre-contract verification of business troduced "training programs in defensive driving for 900 members of counterparts." its staff" in addition to supporting and participating in training sessions on alternative fuels in transport. None of the non-corporate entities articulate specific policies regard- ing the use of suppliers, other than the OECD Guidelines, which "en- At a more general level of policy, BP acknowledges that "managing courage, where practicable, business partners, including suppliers and the transport risks associated with our activities is a priority." subcontractors, to apply principles of corporate conduct applicable Marathon and Occidental provide information to all parties on the safe with the Guidelines." use, transportation, and disposal of raw materials and products. Several of the multi-party organizations also urge safety in the trans- 2.3.10 Transport portation and disposal processes, including API, AIP, SAPIA, and the The industry standard with regard to transportation issues is that com- Principles for the Conduct of Company Operations within the Miner- panies demonstrate a general commitment to improving transportation als Industry. safety--particularly in responding to oil spills. There is no interna- tional standard to which this emerging industry standard can be com- pared and there are no IFC or World Bank Guidelines regarding 2.4 Findings Regarding Socio-Economic transport, independent of general waste management guidelines. and Community-Related Issues Some companies pursue pro-active policies with respect to transport. Total claims to be the first oil company voluntarily to implement trans- In this part of the code of conduct project, matrices are included to il- portation-related measures. Total refuses to charter any oil tanker lustrate the companies' commitment to socio-economic and commu- more than 25 years old and adopted other criteria for chartering ships nity-related issues--in addition to their commitments to human and that are over 15 years old. It mandates that all vessels chartered must labor rights issues and environmental standards. have been inspected during the previous six months. In the industry sectors examined in Part I, codes of conduct rarely ad- Eni frames the issue of transport as an "environmental challenge" in dress the role companies play in the communities in which they oper- which it must "increase oil spill prevention during transport and dis- ate. This is not surprising inasmuch as the companies that were tribution." It is equipped to "respond individually to oil spills of vary- surveyed in Part I usually did not play a dominant role in their com- ing severity both with its own and third-party structures," including by munities. Those companies typically operated a single factory or busi- participating in Oil Spills Response Ltd., a "consortium that guaran- ness, which may have employed several hundred people was not tees rapid response (within 24 hours) to any type of oil-spill emer- central to the economic viability of the area in which it was located. gency" anywhere in the world. Extractive companies are notably different. Due to a variety of factors, Shell maintains a "long-standing system of ship quality assurance, to including the exceptionally long-term nature of their commitment to avoid being associated in any way with a sub-standard vessel." It uti- a particular locale and the limited number of companies in a single ge- lizes a "positive vetting" system to ensure that a ship is suitable for ographical area, extractive companies crafted a plethora of policies re- use, and is "working to raise overall standards of tanker safety." Sta- garding community-oriented issues. The companies recognize that toil also adopted measures to ensure the selection of good tankers, and they frequently play an important--if not preeminent--role in the so- stipulates that certain vessels must have a double hull. cieties in which they operate and, accordingly, articulate statements T H E O I L A N D G A S S E C T O R 21 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 22 on such issues as public participation, local economic development, there is no summary of that category in this narrative. In general, com- indigenous people, land rights, resettlement, and displacement. panies state their concern for the effect of their operations on the sur- rounding community and frequently pledge to consult with stakeholders Since corruption is a critical issue in the developing nations where and local governments when conducting operations. many extractive companies operate, companies also offer policies on issues such as financial transparency, political contributions, bribery The second category in the socio-economic matrices is titled "Social Im- and corruption, and competition and pricing. pact Assessment." The information in this category seeks to determine how a company assesses the direct economic impact it has on the local The attached matrices outline company policies in each of these areas. communities surrounding it. Therefore, it acts in part as a parallel cate- Virtually none of these policies, however, are contained in a traditional gory to the "EMS Standards" category in the environmental matrices. It code of conduct. Instead, most companies present these policies in a was difficult to determine an industry standard for this category because range of supplementary materials. Many of these materials outline ef- only a few companies surveyed conduct explicit social impact assess- forts at sustainable development, and the policies on such issues as in- ments (SIAs) before commencing operations in a given area. It is pos- digenous rights or resettlement issues are often more complex than the sible, however, that some companies conduct SIAs as part of their standards in the human rights and labor rights matrices. Therefore, al- environmental impact assessments (EIAs), and therefore do not address though best efforts were employed to effectively summarize these ma- the issue of SIAs separately. There are also no international standards terials in the matrices, the original documents should also be reviewed regarding the use of SIAs by which to compare the various policies. to obtain a comprehensive understanding of these policies. There is no narrative for the final two categories in the socio-economic Because the policies are not typically short or easy to compare, it is matrices. The category on "Voluntary Initiatives" was included to aggre- much more difficult to determine an emerging trend in the area of gate, in one category, the various standards to which companies adhere, socio-economic issues than it was in the other comparative matrices. including the Global Sullivan Principles (ChevronTexaco, Occidental, In addition, there is a relative lack of international "standards" for Shell, and Statoil), the UN Global Compact (BP, Norsk Hydro, Statoil, these socio-economic and community-based categories. While some Total, and Shell), the OECD Guidelines (Shell and Total), the Voluntary standards provide an international baseline--such as ILO Convention Principles on Security and Human Rights (BP, Exxon Mobil, Chevron- 169 on Indigenous Rights or World Bank Operational Directive 4.30 Texaco, and Occidental), and other international initiatives. Obviously, on Involuntary Resettlement--most do not lend themselves to an in- there is no need to compare these with other international standards. ternational "standard." Accordingly, the companies' policies are fre- quently compared to the UN Norms, which addresses many There is also no narrative for the "Third Party Applicability" category, socio-economic and community-related issues, but which is not an in- which strives to determine the applicability of these socio-economic ternational benchmark since it has not yet been adopted by any nation. principles to other parties, such as suppliers, consultants, and li- censees. Some of this material is similar to that covered in Section The first category in the socio-economic matrices is titled "Public Par- 2.3.9 regarding "Suppliers" in the environmental matrix. ticipation/Community Relations." The information in this category is an overview of general community-related policies, similar to the "Broad Policy Statements" that begin the human rights and environ- 2.4.1 Indigenous People mental matrices. There is no adequate comparison or real "interna- During the past few years, members of the extractive industry grappled tional standard" by which to compare these statements. Accordingly, with policies addressing the rights of the indigenous peoples living in 22 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 23 the communities in which oil and gas deposits, or mineral reserves, are nous peoples," many companies simply articulate a general policy of found. Companies are seeking to operate as cooperatively as possible respect for the varying cultures and traditions of the communities in with the indigenous groups. which they operate. A number of international conventions and legal documents pertain to Odebrecht advocates among the most specific and comprehensive the treatment of indigenous peoples. The preeminent international guidelines on indigenous rights. In addition to addressing indigenous agreement regarding the rights of indigenous peoples is ILO Conven- rights in its Code of Ethics, it maintains separate and distinct Guide- tion 169, concerning Indigenous and Tribal Peoples in Independent lines on Indigenous Peoples, Involuntary Resettlement, Protection of Countries. This Convention is applicable to tribal peoples in indepen- Cultural Properties, and Social Responsibility. The company adopted dent countries whose "social, cultural and economic conditions dis- far-reaching principles, including that: (1) development projects tinguish them from other sections of the national community" and should not adversely affect indigenous peoples; (2) informed partici- peoples in independent countries who are "regarded as indigenous on pation by indigenous peoples should be the basis for addressing issues account of their descent." of common interest; and (3) resources invested in development pro- jects should benefit indigenous peoples directly affected by these pro- A Draft Declaration on the Rights of Indigenous Peoples, which re- jects. Odebrecht's management staff is charged with identifying any flects the input of indigenous peoples as well as national governments, negative impacts of projects on indigenous peoples and preparing re- is currently under consideration by the United Nations. ports for the Board of Directors on plans and activities affecting in- In addition, some lending institutions, including the World Bank, digenous peoples. maintain their own guidelines regarding the treatment of indigenous BP's policy states that it will "liaise with government and responsible peoples with respect to projects that receive their funding. World Bank NGOs to respect land and other rights of indigenous peoples." Statoil Operational Directive (O.D.) 4.20 on Indigenous Peoples (September pledges to be "increasingly involved in areas where [its] operations re- 1991) ensures that indigenous people benefit from development pro- quire contact with indigenous peoples and their rights." Accordingly, jects and that companies avoid or mitigate potentially adverse effects Statoil plans to develop guidelines this year to deal more systemati- on them. Detailed requirements are also set out in the World Bank's cally with issues relating to the rights of indigenous peoples affected Indigenous People Development Plan. by its operations. These documents accord indigenous peoples distinctive rights based Some companies pursue general policies focused on issues of cultural upon factors that include their "self-definition," institutions, language, rights and sensitivity. Eni states that it "draws inspiration for its busi- vulnerability, attachment to specific land, and subsistence lifestyle. ness conduct from its respect for the cultures, religions, traditions and The principles governing international law regarding the rights of in- ethnic diversity of the communities where it operates." Exxon Mobil digenous peoples focus upon the collective rights of these individuals, states that it has a "deep respect for and understanding of different peo- and stress the importance of identifying indigenous lands, cultural ple and cultures." Norsk Hydro recognizes "the intrinsic value of the rights, and their right to exist as distinct peoples. different cultures in which [it] operates, and will show respect for There is no emerging standard within the oil and gas sector regarding these cultures." Occidental's Good Neighbor Policy provides that it indigenous rights other than a recognition that issues involving in- will "uphold the human, cultural, and legal rights of neighbors directly digenous peoples should be addressed by companies. Although a few impacted by Occidental's operations" and "support efforts to maintain "leadership" companies maintain policies that use the phrase "indige- the integrity of their customs, values and traditions." T H E O I L A N D G A S S E C T O R 23 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 24 ChevronTexaco and Shell subsume their commitments to indigenous benefits;" (3) displaced persons should be "compensated for their rights in their adherence to the Sullivan Principles and Total simply losses at full replacement cost prior to the actual move, assisted with states that it adheres to the UDHR. Marathon and Galp Energia have the move, supported during the transition period in the resettlement no specific policy regarding indigenous peoples or their rights. site, and assisted in their efforts to improve their former living standards, income earning capacity, and production levels, or at least to restore Among the multi-party organizations, ARPEL has one of the most them;" (4) community participation in planning and implementing re- comprehensive and specific policies on indigenous peoples. It states settlement should be encouraged; and (5) "resettlers should be inte- that "the road to an open dialogue among government, indigenous grated socially and economically into host communities." peoples and the oil industry in Latin America has already been trod- den. The tripartite meetings have helped improve the understanding of There is a slowly emerging trend among companies to address the concerns and interests of the three parties involved. Despite the fact issue of forced resettlement, and to compensate, or even improve the in- that regional meetings are dialogue instances and not negotiation comes of, resettled populations. Instead of adopting policies on the rounds, the Latin American oil and gas industry has found in the meet- issue of land rights and resettlement, however, many companies sim- ings an ideal mechanism for a better understanding of the expectations ply state their general support for universal human rights, implicit in and objectives of the three parties." which may be guarantees of land and resettlement rights. Some companies address land rights, but not the issues of resettlement 2.4.2 Land Rights, Resettlement, and Displacement or displacement. Eni, for example, does not maintain a specific policy Policies regarding land rights and the potential for resettlement and on the issue of resettlement, but states that "land acquisition is always displacement go hand in hand with policies regarding indigenous obtained through voluntary agreements with landowners, and standard rights. Accordingly, the international standards on these issues over- compensation rates for restriction of land use are paid in accordance lap in large part with the standards governing indigenous rights, in- with national laws." Resettlement and displacement issues could be cluding those set forth in ILO Convention 169. subsumed into companies' general policies on human rights and in- digenous rights, such as Eni's policy to "systematically engage in open The main international standard on the issue of land rights and reset- consultation processes with local populations and implement tools to tlement is the World Bank's O.D. 4.30 on Involuntary Resettlement appraise the overall impacts of its activities." (June 1990), which applies to both physical and economic displace- ment. It seeks to ensure that "the population displaced by a project re- ChevronTexaco does not maintain specific policies on land rights and ceives benefits from it," and states that involuntary resettlement "is an resettlement but does adhere to the Global Sullivan Principles, which integral part of project design" and "should be dealt with from the ear- supports "universal human rights." Shell also adheres to the Global Sul- liest stages of project preparation." livan Principles and, in addition, states that it is "committed to working together with the community to limit...disruptions," including some In particular, O.D. 4.30 states that any such project preparation should forms of resettlement. Occidental's Good Neighbor Principles do not take into account certain basic principles, including that: (1) "invol- specifically address resettlement, but do address the cultural and legal untary settlement should be avoided or minimized where feasible;" (2) rights of "neighbors directly impacted by Occidental's operations." where involuntary settlement is unavoidable, resettlement plans should be developed and resettled individuals should be "provided Several companies lacking specific policies on these matters use case sufficient investment resources and opportunities to share in project studies to reflect their positions. Exxon Mobil, for example, writes that 24 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 25 in Cameroon and Chad the "pipeline was rerouted to avoid settle- 2.4.3 Local Economic Development ments" and programs were developed to "compensate for temporary Virtually every company surveyed displayed a commitment to con- loss of crops and in some instances for resettlement." tribute to the communities in which they operate, and to positively im- pact the local economies in which their projects are situated. The BP adopted one of the most specific and progressive policies on re- nature and extent of such contributions, however, spanned a broad settlement. In 2002, it developed a set of guidelines in partnership with spectrum. At a minimum, companies state that they donate to local hu- a "major economic and social rights NGO" that are based on "inter- manitarian efforts. Some direct their community support at sustainable national best practice and international human rights law." The guide- development efforts, and others help to build local capacity by em- lines explicitly state that BP aspires to "avoid physical resettlement phasizing such specific initiatives as training and hiring employees wherever possible, but when a project makes resettlement unavoid- from the local workforce. able, ensures that it is minimised and carried out through a fair process, in consultation with the people affected." BP always aims to "restore There is no good international barometer by which to compare these or improve the income-generating capacity and quality of life of any- initiatives. Even the UN Norms do not specifically address the issue of one resettled as a part of [its] activities." local economic development. The Norms do, however, address the Odebrecht also adopted a very strong and comprehensive policy on re- issue generally, stating that transnational corporations and other busi- settlement. This policy indicates that "Involuntary resettlement should ness enterprises shall respect rights of communities to "own, occupy, be avoided or minimized where feasible, exploring all viable alterna- develop, control, protect, and use their lands." There are also a plethora tive project designs," and project designs should "take into account in- of UN principles regarding development cooperation. voluntary resettlement from the earliest stages of project preparation." The OECD Guidelines "encourage local capacity building through Odebrecht commits to providing persons resettled involuntarily with close cooperation with the local community, including business inter- fair compensation for losses prior to the actual move; assistance in the ests, as well as developing the enterprise's activities in domestic and move; support during the transition period at the new site; and assis- foreign markets, consistent with the need for sound commercial prac- tance in their efforts to improve or at least restore their former living tice." The Caux Roundtable Principles include assuming the "respon- standards, income earning capacity, and production levels. It also rec- sibility to be a good corporate citizen through charitable donations, ognizes that "community participation in planning and implementing educational and cultural contributions, and employee participation in resettlement should be encouraged, relying to the greatest extent pos- community and civic affairs." sible on existing cultural and social institutions of resettlers and their host communities." With a more direct focus on this industry sector, SAPIA states that its "oil companies devote extraordinary effort to helping upgrade com- Of the non-corporate entities with guiding principles or codes of con- munities," in part because its members "recognize that their future is duct, only the Principles for the Conduct of Company Operations bound up with the advancement and prosperity of thousands of their within the Minerals Industry contain specific guidelines in this area. employees and millions of their consumers" and appreciate that the They stipulate that "companies should not forcibly remove or be a "reduction of imbalances in South African society is imperative." party to others who want to remove indigenous people from their land or territories," and that "no relocation shall take place without free and Virtually all the companies in the oil and gas sector, including BP, informed consent of the indigenous peoples concerned" or before ChevronTexaco, Exxon Mobil, Eni, Marathon, Norsk Hydro, Occi- reaching an agreement regarding "just and fair compensation." dental, Galp Energia, Statoil, and Total, maintain policies emphasizing T H E O I L A N D G A S S E C T O R 25 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 26 investment in sustainable development and local capacity building. forms of corruption. The specificity and comprehensiveness of such The policies of many companies, including BP, Exxon Mobil, Norsk policies differ, but there is virtual unanimity regarding their importance. Hydro, Eni, and Occidental, also emphasize the hiring and training of Specific policies with respect to bribery include limiting the value of local employees. acceptable gifts or entertainment, refusing to pay or receive legitimate Among the more comprehensive and progressive policies, Statoil aims gifts if doing so would create an appearance of impropriety, and ap- to adopt the "recently-developed guidelines for social investment as a plying the same policy to agents of the company as to the company's group-wide policy." These guidelines stipulate that all Statoil-spon- own employees. A significant number of the companies surveyed cat- sored projects (1) must accord with UN principles for development co- egorically reject all facilitation payments. operation; (2) build on communities' own efforts and fit into national A number of strong international agreements and standards address development plans; (3) be undertaken through organizations with the bribery and corruption issues and can be used as a benchmarks. These necessary expertise and capacity in promoting human rights and devel- include the recently passed UN Convention Against Corruption, the opment; and (4) seek, through social investment projects, to build local OECD Convention on Combating Bribery, and the UN Norms. Al- capacity in the fields of health, education, human rights and governance. though these international agreements go further than most compa- BP's "aim is that countries and communities in which it operates nies' policies, and none of the companies have yet to specifically should benefit directly from its presence--through the wealth and jobs endorse these agreements, the emerging trend among companies is to created, the skills developed within the local population, and the in- prohibit all forms of bribery and corruption. vestment of its time and money in people rather than things, so that it In addition to international agreements, an important multi-party ini- creates substantial human progress." tiative regarding corruption is the "Publish What You Pay" campaign, Eni "contributes actively to the welfare of the populations and coun- which was launched in June 2002 by Transparency International, the tries where it operates, trying to identify their real needs, that change Open Society Institute, Global Witness, and a number of other NGOs. according to their development level, and to provide adequate and ef- The campaign calls on the Group of Seven (G7) industrialized nations ficient solutions to problems, and expectation in order to generate sus- to take leadership steps to promote transparency worldwide. One part tainable and enduring value." Its objective is to contribute to of this initiative would require stock market regulators to make oil, "economic self-sufficiency, to favor the transfer of skills and knowl- gas, and mining companies publish net taxes, fees, royalties, and other edge, to promote dialogue with stakeholders while creating and pre- payments to all national governments as a condition for being listed serving a climate of trust." Eni is also "dedicated to contributing on international stock exchanges and financial markets. building capacity, improving living conditions and enhancing socio- A related anti-corruption effort, the Extractive Industries Trans- economic development in the areas in which it operates." parency Initiative (EITI), was launched by UK Prime Minister Tony Blair at the World Summit on Sustainable Development, in Johannes- 2.4.4 Bribery and Corruption/Facility Payments burg in September 2002. The UK Department for International De- Bribery and corruption issues, frequently endemic in the developing na- velopment is actively promoting this initiative within the international tions in which many oil and gas companies operate, significantly impact community. The EITI encourages governments, publicly traded, pri- those companies. Thus, it is not surprising that the trend within the oil vate and state-owned extractive companies, international organiza- and gas sector is to develop strong policies opposing bribery and other tions, NGOs, and other entities interested in the extractive industries 26 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 27 to work together to develop a framework to promote transparency of of `nominal value' and `reasonable entertainment' and a compliance payments and revenues. process, should be put in place by local management, and agreed with the appropriate Regional or Country President." BP regards "small fa- Participants in the EITI acknowledge a number of guiding principles, cilitating payments," as defined under the US Foreign Corrupt Prac- including that natural resource wealth should be an important engine tices Act, "as bribes and will not make them." for sustainable economic growth and poverty reduction, but if not managed properly, that wealth can create negative economic and so- Shell states that the "direct or indirect offer, payment, soliciting and cial impacts. acceptance of bribes in any form are unacceptable practices." To "avoid inadvertently becoming involved with corrupt practices Additionally, TI and SAI recently published Business Principles for through the use of intermediaries," Shell companies in 82 countries Countering Bribery. These guidelines, developed in consultation with "implement a procedure to ensure that the use of intermediaries does private companies, NGOs and trade unions, are meant to provide com- not compromise business integrity." Shell "does not sanction illegal panies with practical guidance regarding how to implement interna- payments of any kind," and has a policy "not to make facilitation pay- tional standards on bribery and corruption. The Principles aim to ments, and seeks to ensure that its agents, contractors and suppliers do "[p]rovide a framework for good business practices and risk manage- not make them either." ment strategies for countering bribery," and ask that companies "pro- hibit bribery in any form whether direct or indirect" and "commit to Statoil "does not accept corrupt behaviour," and "expressly prohibits implementation of a Programme to counter bribery." Among the im- receiving, offering or soliciting bribes." "All forms of corruption are plementation mechanisms they suggest are for enterprises to "prohibit regarded as unacceptable, even facilitation payments...must be erad- the offer, gift, or acceptance of a bribe in any form, including kickbacks, icated." Statoil "recognizes that such payments are sometimes un- on any portion of a contract payment, or the use of other routes or chan- avoidable, but they cannot be condoned." If they are paid, Statoil nels to provide improper benefits to customers, agents, contractors, sup- "requires that they are accurately recorded as such in our books and pliers or employees of any such party or government officials." not disguised as something else." Publish What You Pay highlights the work of BP, Shell, and Statoil for its participation in the EITI High-Level Multi-Stakeholder Con- 2.4.5 Political Contributions ference and for its "open and public" endorsement of the EITI. Tied to the issues of bribery and corruption is the issue of the com- pany's political contributions made by a company or its employees, BP's policy prohibits employees from "offer[ing], pay[ing], either in the company's country of incorporation or in the nations in solicit[ing], or accept[ing] a bribe in any form" and prohibits "third which it operates. There is a trend that contributions are only allowed parties, such as agents and consultants" from doing so as well. It ad- to the extent permitted under applicable law, and many companies in- vises that the "best action may be to challenge bribery at a senior level creasingly ban political contributions altogether. and consider exposing the practice in the public domain." BP states that, "Any demand for, or offer of, a bribe in whatever form to any em- There is not necessarily an international benchmark regarding politi- ployee must be rejected and reported immediately to line manage- cal contributions, although the UN Norms, in a general statement re- ment. Employees should be aware that even the perception by others garding transparency, provides that transnational corporations and that a gift is in fact a bribe is sufficient to damage the company's rep- other business enterprises "shall recognize and respect applicable utation." A "local gifts and entertainment policy, to include definition norms of international law; national laws; regulations; administrative T H E O I L A N D G A S S E C T O R 27 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 28 practices; the rule of law; the public interest; development objectives; directly and indirectly lobbying public bodies and officials; and by social, economic, and cultural policies including transparency, ac- supporting candidates, parties and campaigns that further" the com- countability, and prohibition of corruption; and authority of the coun- pany's viewpoints. tries in which the enterprises operate." Occidental notes the distinction between corporate donations and do- The OECD Guidelines stipulate that enterprises should "not make il- nations by employees, encouraging employees to "participate in the legal contributions to candidates for public office or to political par- political process on their own time" while emphasizing that "employees ties or to other political organizations" and that any "contributions will not be required by the company to make any political contributions." should fully comply with public disclosure requirements and should Most companies stipulate that exemptions to their policies regarding be reported to senior management." political contributions can only be made with the permission of the TI and SAI's Business Principles for Countering Bribery suggest that Board of Directors or a senior company official. enterprises and their "employees or agents should not make direct or Few of the multi-party or non-corporate entities analysed maintain indirect contributions to political parties, organisations or individuals specific provisions with regard to political contributions, although ICC engaged in politics, as a way of obtaining advantage in business transac- states that "contributions to political parties or committees, or to indi- tions" and should "publicly disclose all [their] political contributions." vidual politicians, may only be made in accordance with the applicable Among the companies analysed, BP, Odebrecht, Occidental, Shell, law, and all requirements for public disclosure of such contributions Statoil, and Total prohibit political contributions in the countries in shall be fully complied with." which they operate. ChevronTexaco, ExxonMobil, and Eni allow con- tributions to the extent allowed by applicable domestic law. 2.4.6 Financial Transparency BP's policy is particularly clear. Since April 2002, it has "stopped The issue of financial transparency overlaps with the issues of bribery making corporate political contributions anywhere in the world." Shell and corruption in section 2.4.4--particularly with respect to the Pub- states that it "does not make payments to political parties, organiza- lish What You Pay campaign and the EITI. Please refer to that section tions, or their representatives, or take any part in party politics." Sta- for information regarding these public initiatives. toil provides it "makes no political contributions," although it "does reserve the right to participate in public debates where this is in its Virtually all companies now make public commitments to financial business interest." Odebrecht prohibits any "illegal, improper or ques- transparency, although the levels of these commitments vary widely. tionable payment to a public official or the like, whether directly or The most progressive companies document and memorialize business through third parties," and forbids the giving of "gifts, benefits, or decisions and agreements, require accurate accounting verified by ex- even pay travel expenses for public officials and their families with a ternal auditors, and do not allow any off-balance sheet accounting. view to influencing decisions." Although there is little consensus regarding an international standard ChevronTexaco and Exxon Mobil view the issue of political contri- for financial transparency, the EITI sets a particularly high bar, and the butions in a context that seems particularly applicable to demonstrating UN Norms require that companies recognize and respect "applicable political expression within the United States. ChevronTexaco, for in- norms of international law, national laws, regulations, administrative stance, "exercises its fundamental rights and responsibility to influence practices...and social, economic, and cultural policies including trans- [government] decisions by participating in public policy debates; by parency, accountability, and prohibition of corruption." The OECD 28 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 29 Guidelines provide that enterprises should "ensure that timely, regu- states that "all financial transactions must be properly and fairly lar, reliable and relevant information is disclosed regarding their ac- recorded in appropriate books of account available for inspection" and tivities, structure, financial situation, and performance," and that they the Principles for the Conduct of Company Operations within the Min- "apply high quality standards for disclosure, accounting, and audits." erals Industry provides that "companies should have regular and inde- pendent audits of their operations carried out by independent auditors, TI and SAI's Business Principles for Countering Bribery suggest that which include representatives nominated by relevant stakeholders." enterprises "maintain accurate books and records, available for in- spection, which properly and fairly document all financial transac- tions," "maintain off-the-books accounts," and encourage employees 2.4.7 Competition and Pricing and others to "raise concerns and violations as early as possible." To Like financial transparency, the issue of competition and pricing over- that end, the Principles suggest that enterprises "should provide secure laps with the issues of bribery and corruption presented in section and accessible channels through which employees and others should 2.4.4--particularly with respect to the Publish as You Pay campaign feel able to raise concerns and report violations (`whistle-blowing') in and the EITI. Please refer to that section for information regarding confidence and without risk of reprisal." these initiatives. BP, Shell, and Statoil demonstrate particular leadership in this area by Although few companies specifically address competition and pricing, making their books available to public scrutiny. BP states that it "holds those that do so indicate that they will demonstrate full compliance no secret or unrecorded funds of money or assets" and that it is open with relevant antitrust, corporate, and anti-boycott laws. about its performance "whether good or bad" because it "believes that There is not a clear international standard by which to benchmark the this not only enhances its accountability, but also acts as stimulus for policies of the companies, although the Commentary to the UN Norms improvement." Shell has comprehensive corporate information pro- comes close. It states that "transnational corporations or other busi- grams and "provides full relevant information about their activities to ness enterprises shall encourage the development and maintenance of legitimately interested parties." Among other innovative programs, fair, transparent, and open competition by not entering into arrange- Shell maintains hotline numbers or whistle-blowing protection pro- ments with competing businesses to either directly or indirectly fix grams in 70 countries to allow employees to raise concerns without prices, divide territories, or create monopoly positions." any fear of reprisal. Similarly, the OECD Guidelines provide that MNEs should, within Statoil "openly reports its performance and uses a competent and in- the framework of applicable laws and regulations, "conduct their ac- dependent body to verify its reported data." Occidental states that it tivities in a competitive manner and refrain from entering into or car- will not use any off-balance sheet fund or account for any purpose or rying out anti-competitive agreements among competitors to fix use any offshore corporate entity for any illegitimate purpose. prices; make rigged bids (collusive tenders); establish output restric- tions or quotas; or share or divide markets by allocating customers, Among the multi-party or non-corporate entities that address this suppliers, territories, or lines of commerce." issue, ARPEL provides that "more and more companies in all sectors are working to enhance their public accountability or credibility by Companies offer a range of statements regarding competition and pricing. improving their transparency, reporting, and stakeholder engagement Eni emphasizes that it respects "the rules protecting fair competition" efforts" and SAPIA states that one of its "core purposes" is to "ensure and conducts "its business activities in internal and external markets transparency and the open good governance of the industry." The ICC according to standards that are compatible with fair commercial practice." T H E O I L A N D G A S S E C T O R 29 CRS_Oil-Gas_Ch02 3/3/04 12:19 Page 30 BP "encourages employees to seek counsel in areas that may be af- ChevronTexaco states that it must "always make its pricing decisions fected by U.S. anti-boycott laws, foreign trade controls, and export independently of its competitors." Shell provides that "Shell compa- control regulations" and notes that it "will not condone acts by em- nies support free enterprise. They seek to compete fairly and ethically ployees that contravene competition or antitrust law." Exxon Mobil and within the framework of applicable competition laws; they will mandates that its officers "comply with the antitrust and competition not prevent others from competing freely with them." laws of the United States and with those of any other country or group of countries which are applicable to the Corporation's business" and Of the multi-party and non-corporate entities examined, the Caux Occidental "conducts its business activities in accordance with all ap- Roundtable indicates that "to avoid frictions and to promote free trade, plicable U.S. antitrust, competition and trade practice laws, as well as equal conditions for competition, and fair and equitable treatment for all the laws in the countries where it operates." participants, business should respect international and domestic rules." It also suggests that companies support the General Agreement of Tar- Companies based in Europe maintain analogous policies. Norsk iffs and Trades (GATT) and the World Trade Organization (WTO), "co- Hydro, for example, complies with the European Union (EU) Com- operate in efforts to promote the progressive and judicious liberalization petition Compliance Program in an effort to "avoid situations in of trade," and "foster open markets for trade and investment and pro- which Hydro may be in breach of the competition rules, and to avoid mote competitive behavior that is socially and environmentally benefi- unnecessary suspicion among competition authorities." The company cial and demonstrates mutual respect among competitors." SAPIA developed a compliance manual, appointed competition compliance "believes that free market forces should set the prices of all petroleum officers, and conducts courses and seminars on competition and products," although it acknowledges that this "will only happen once pricing. certain social objectives spelt out by the governments have been met." 30 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 31 3 The Mining Sector 3.1 Scope and Methodology Chemical, Energy, Mine Workers Union (ICEM), the Minerals Council of Australia, the Mining Association of Canada, the National Mining The fifth and final industry sector examined under the auspices of this Association, and the World Coal Institute. The Australian Parlia- project was the mining sector and initially, companies and entities ment's proposed Corporate Code of Conduct Bill (2000) was also with a specific nexus to the Philippines. The codes of conduct of the summarized, as was the Principles for the Conduct of Company Op- following major multinational mining companies were analyzed: erations within the Minerals Industry produced by the Mineral Policy Alcan Inc. (Alcan), Alcoa Inc. (Alcoa), Anglo American p.l.c. (Anglo Institute, and the Business Principles for Countering Bribery pro- American), Barrick Gold Corporation (Barrick Gold), BHP Billiton duced by TI and SAI. Limited (BHP Billiton), CEMEX, S.A. de C.V (CEMEX), Freeport- McMoRan Copper & Gold (Freeport-McMoRan), Lepanto Consoli- All of these companies and entities consented to participating in this dated Mining Company (Lepanto), Newmont Mining Corporation project, with the exception of Basic Element Company, the Chamber (Newmont), Noranda Inc. (Noranda), Norsk Hydro ASA (Norsk of Mines of South Africa, and ICEM, which are therefore excluded Hydro), Pasminco Limited (Pasminco), Phelps Dodge Corporation from the analysis and accompanying annexes. (Phelps Dodge), Philex Gold Inc. (Philex), Placer Dome Inc. (Placer The companies selected for participation in this analysis were pri- Dome), Rio Tinto Group (Rio Tinto), Basic Element Company (Sibal, marily large multinational enterprises with well-developed CSR ac- Sibirsky Aluminum Group) (Basic Element), Silangan Mindanao Ex- tivities, although several of them operated exclusively in the ploration Company Inc. (a joint venture of Philex Gold Philippines Philippines, such as Silangan Mindanao Exploration Company Inc. Inc.andAngloAmericanExplorationPhils.Inc.),TeckComincoLimited Due to the nature of this analysis, a true cross-sampling of all types of (Teck Cominco), WMC Resources Limited (WMC Resources), and mining companies was not attempted because some companies do not Union Cement Corporation (a member of the Holcim Group) (Union have codes of conduct. As with the companies reviewed in the oil and Cement). gas sector, a decision was made to examine the largest, most multi- national, and most progressive companies, in an effort to determine Additionally, as in the other sectors, codes of conduct of mining as- areas of overlap amongst this "leadership" cadre. Any "emerging sociations, nongovernmental organizations (NGOs), and multilateral trends" that were identified helped to ascertain and define "industry organizations were also summarized, including: the Chamber of practices," and how they compare to international standards. Mines of South Africa, European Association of Mining Industries (Euromines), the European Commission (EC), the International As was noted in the Introduction to the oil and gas sector review, three Council on Mining & Metals (ICMM), the International Federation of matrices were prepared to summarize the codes of conduct of participating 31 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 32 entities in the extractive industries--one devoted to human rights and mining that are not included in the Handbook, but are still technically labor rights issues, one to environmental standards, and one to socio- considered World Bank Group "Guidelines," both of which are specif- economic conditions and community concerns. This final category ically applicable to the mining sector. These are guidelines for "Min- was not included in the industry sectors analyzed in Part I of the report ing and Milling--Underground" and "Mining and Milling--Open because those industries typically do not have these provisions in their Pit," and examples of these guidelines have also been included in the codes of conduct. Due to the distinguishing characteristics of extrac- "international standards" section of the environmental matrices. tive industries, however, particularly their engagement with the com- Lastly, there is also a relative lack of any international "standard" for munities in which they operate, these additional matrices were added the socio-economic and community-based categories. Therefore, the for the second part of the study. most frequently referenced standards are drawn from either less spe- For an overview of the categories included in the three matrices, please cific and broadly-themed UN documents, including the International refer back to the Introduction to the oil and gas sector review. The cat- Covenant on Civil and Political Rights, or documents like the recently egories in the matrices devoted to human rights and labor issues and passed UN Norms, which is arguably not yet an international "stan- to environmental standards remain the same as they were for the oil dard" because it has not yet been adopted by any nation. Additionally, and gas companies. For the matrices cataloguing the socio-economic when applicable, World Bank Operational Directives (OD) were also conditions and community concerns, however, several categories have used, but though these represent important multilateral perspectives, been added for the mining sector, in addition to all the categories that they are arguably not as much of a "standard" as would be an interna- were included in the oil and gas matrices, including categories for tional treaty signed and ratified by sovereign nations. "mine closure" and "artisinal and small-scale mining." In aggregating the material in the matrices, it became apparent that As with the oil and gas sector, international standards are presented mere codes of conduct would not contain all the information that was for each of the categories in the three matrices, so that analyses can be being sought on these issues. In fact, the extractive industries differ made to determine how emerging trends compare to international from the other industry sectors analyzed because companies typically benchmarks. For the human rights and labor rights categories, the have drafted "principles" or "guidelines" rather than actual codes of most frequently referenced international standards are drawn from the conduct, and such principles frequently cite and describe practices UDHR, ILO Conventions and Recommendations, the UN Norms, and rather than policies. other international instruments. Thus, although some of the attached information has been taken from Due to the relative lack of any international "standard" for environ- salient codes of conduct, a wide range of other material was also mental issues comparable to the role played by the ILO Conventions examined--particularly to ascertain a company's socio-economic and Recommendations for human rights and labor issues, standards practices or environmental policies. These other materials include from the World Bank/IFC "Pollution Prevention and Abatement items such as Annual Reports; Health, Safety and Environment (HSE) Handbook" (The Handbook) have been included in the final row of the Reports; Sustainable Development Policies; Social Responsibility environmental matrix. The standards presented from the Handbook Reports; Collective Bargaining Agreements; and a range of similar primarily include generally applicable standards distilled from the corporate documents. The first time each company or non-corporate guidelines, although there are occasionally more specific standards tai- entity is cited in the matrices, a footnote is included that details the var- lored to both base metal and iron ore mining, and coal mining and pro- ious documents consulted and reviewed in ascertaining the material in duction. Additionally, there are two World Bank/IFC guidelines for the matrices. 32 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 33 Since it is less desirable to use material that is descriptive of practices, BHP Billiton, Placer Dome, and Union Cement adhere to the UN rather than policies, this was only done when a company or non-cor- Global Compact principles regarding the use of labor, and BHP Billi- porate entity had no stated policy on the issue. Thus, in seeking to de- ton adheres to the principles contained in the UDHR. termine the emerging industry standards in these broad issue areas, it Several companies note their adherence to relevant local legislation. was determined to be more important to include any public statement Teck Cominco's Code of Ethics states that, in all areas where it con- an entity had on a particular issue than to keep exactly to the text in ducts operations, it complies with the laws and stated ethics of Canada the "code of conduct." that address human rights abuses. Barrick Gold, Newmont, Noranda, Phelps Dodge, WMC Resources, 3.2 Findings Regarding Human Rights and CEMEX do not provide specific statements or policies regarding and Labor Rights Practices the use of forced labor. 3.2.1 Forced Labor A number of the non-corporate entities provide specific prohibitions As noted in the discussion of forced labor with regard to companies in against the use of forced labor. ICMM has a policy not to use forced the oil and gas sector (Section 2.2.1), there is not the same degree of con- or compulsory labor. The Australian Parliament's proposed Corporate formity among extractive companies--including mining companies-- Code of Conduct states that companies must not use or obtain the ben- in prohibiting the use of forced labor or child labor as there is among the efit of forced or compulsory labor. The Principles for the Conduct of companies in the footwear and apparel and agribusiness industry sec- Company Operations within the Minerals Industry, produced by the tors. There are, however, differences in approach between oil and gas Mineral Policy Institute, state that "[c]ompanies must recognise that companies and mining companies on these issues, likely due to the fact forced labour is unacceptable,...and therefore,...no one shall be re- that mining companies employ more uneducated workers than oil and quired to perform forced or compulsory labour." The Minerals Council gas companies, which employ more professionals, such as engineers. of Australia, the Mining Association of Canada, and the World Coal Institute do not provide specific statements or policies about the use of A number of the mining companies have specific policies prohibiting forced labor, and the National Mining Association has only a very the use of forced labor, including Alcan, Alcoa, Anglo American, general policy statement about the industry's respect for human rights. Norsk Hydro, and Rio Tinto. Alcan's code states that it "does not hire or approve of child or forced labor in any form (which includes by our The prohibition against the use of forced labor was the subject of one suppliers)." Norsk Hydro's policy provides that it "do[es] not accept of the first global human rights campaigns. The ILO passed the Forced forced labor" and Rio Tinto states that it "do[es] not and will not use Labor Convention (No. 29) in 1930 and augmented it several years forced, bonded, or child labor." later with the Abolition of Forced Labor Convention (No. 105) in 1957, both of which prohibit the use of any type of forced labor. Simi- While a number of mining companies do not make specific statements larly, the UN Global Compact mandates the elimination of "all forms regarding the use of forced labor, many of them state their commitment of compulsory labor" as does the UN Norms. to operating within the framework of existing human rights treaties and agreements, which in turn prohibit the use of forced labor. Therefore, although these companies may not include statements about forced 3.2.2 Child Labor labor in their codes of conduct or equivalent corporate documents, they As with companies in the oil and gas sector, mining companies gen- nonetheless make public commitments about the issue. For instance, erally have less specific policies with regard to child labor in their T H E M I N I N G S E C T O R 33 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 34 codes of conduct than companies in the light manufacturing and complies with the laws and stated ethics of Canada that address human agribusiness sectors. Again, this is undoubtedly due to the inherent rights abuses. differences between the industries' workplaces. As with the analysis Notably, Noranda's policy does not prohibit child labor outright. The on forced labor issues, mining companies have more specific policies company states that if it is "faced with having to make decisions about on this issue than oil and gas companies, likely due to the fact that they employment of children" it will "seek expert advice to ensure that we employ more unskilled workers, and therefore confront this issue obtain a thorough understanding of the context, including the alterna- more frequently. Few mining companies, however, set specific mini- tives available to such children" and works to make informed and trans- mum ages for child labor in the same manner as apparel and manu- parent decisions based on "the best interests of the children involved facturing companies. and on whether we will be making a positive contribution to the con- Among the mining companies, Alcan, Alcoa, Anglo American, Barrick ditions in which they live." The company notes that it will not employ Gold, Norsk Hydro, and Rio Tinto specifically prohibit the use of child children for any work deemed hazardous and that it will "never select labor. Anglo-American states clearly that it "prohibit[s] the use of child children because they represent a cheaper source of labour." labor." Notably, Barrick Gold's policy prohibits the employment of Newmont, Phelps Dodge, WMC Resources, and CEMEX do not pro- child labor "at its operations or by contractors in the employ of its op- vide specific statements or policies regarding the use of child labor. erations." Union Cement states that it will not use the labor of any child who is of the age where education is still compulsory under local law. Of the non-corporate entities surveyed, several provide specific poli- cies prohibiting child labor. ICMM's policy prohibits child labor, and Rio Tinto and Norsk Hydro are unusual in that they set specific age the Principles for the Conduct of Company Operations within the Min- limitations. Rio Tinto stipulates that its "[o]perations generally apply erals Industry, produced by the Mineral Policy Institute, state that a minimum age requirement of 18, except in the case of apprentice- "[c]ompanies must recognise ... the right of the child to be protected ships or trainees under regulated government training schemes." from economic exploitation" and that "[c]ompanies must respect the Norsk Hydro declares that it "does not allow child labor and does not minimum age for admission to employment." The Australian Parlia- engage children under 16 in [its] operations," although "if the child is ment's proposed Corporate Code of Conduct states that companies secured the right for education, play, rest and family life, limited ex- must not use or obtain the benefit of labour from any child under the ceptions may be made if this is in the best interests of the child." age of fourteen in any public or private industrial undertaking. As noted in the discussion of forced labor standards, a number of com- The Minerals Council of Australia, the Mining Association of Canada, panies reference their commitments to external standards rather than and the World Coal Institute do not provide specific statements or poli- including specific statements about child labor in their codes. BHP cies regarding the use of child labor and the National Mining Associ- Billiton, Placer Dome, and Union Cement adhere to the UN Global ation makes a very general policy statement about the industry's Compact principles regarding the use of labor, and BHP Billiton also respect for human rights. adheres to the principles in the UDHR. Thus, the emerging standard appears to be that companies in the min- Several companies indicate that they abide by all relevant legal standards. ing sector prohibit the use of child labor, although they do not define Freeport-McMoRan states that it will obey the local laws and regula- the term nearly as specifically as in those industry sectors in which the tions of the countries in which it operates, while Teck Cominco's problem of child labor is more widespread. Virtually all codes com- Code of Ethics states that, in all areas where it conducts operations, it ply with the spirit of the UN Global Compact (to "effectively abolish 34 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 35 child labor") or the UN Norms (to "respect the rights of children to be companies in their geographical areas of operation. Barrick Gold protected from economic exploitation"). states that "[b]enefits offerings are partly determined by local compet- itive practices;" Norsk Hydro's policy notes that "our salary systems Because virtually none of the policies set minimum ages for working, shall be competitive and shall reflect results achieved;" and CEMEX however, the emerging standard does not necessarily conform with the states that it offers its employees "competitive compensation." ILO Minimum Age Convention (No. 138) and the Worst Forms of Child Labor Convention (No. 182), which state that minimum age is Companies also note their compliance with applicable legislation. the greater of 15 (or 14 in certain countries), or the age for completing Alcoa provides that "compensation meets or exceeds the legal mini- local compulsory education. The ILO also provides for far more ex- mum and is competitive with industry standards," while Freeport-Mc- tensive protections for children than those mandated in most codes, MoRan states that it will "obey the laws and regulations of the host such as protecting children from work that is hazardous or would country with respect to employment." Union Cement's policy provides "harm health." Additionally, few companies offer the provisions out- that it will ensure "wages that meet local industry good practice." lined in ILO Recommendation No. 146, which stipulates that for any Of the mining companies analyzed, only Phelps Dodge, Placer Dome, children found performing labor, the company must enable them to at- Teck Cominco, and WMC Resources do not provide specific public tend school and will not hire them during school hours. statements or policies regarding wages or terms of employment. Among the non-corporate entities, only the standards established by 3.2.3 Wages, Benefits, and Terms of Employment the Australian Parliament and the Mineral Policy Institute make spe- Companies in the mining sector address issues related to compensation cific references to a living wage. The Australian Parliament's pro- in a number of ways. Unlike companies in the apparel and manufactur- posed Code states "[a]n overseas corporation must:...[p]ay all its ing industries, however, most mining companies have no specific men- workers a living wage (sufficient to meet the basic needs of a family tion of minimum wage or overtime salaries, but maintain principles of 2 adults and 3 children)." The Principles for the Conduct of Com- stating their general compensation systems. For instance, unlike some pany Operations within the Minerals Industry, produced by the Mineral of the apparel and manufacturing companies surveyed, none of the min- Policy Institute, mandate that "[c]ompanies must recognize that every- ing companies have policies regarding the provision of a "living wage" one has the right ...to just and favorable conditions of work and to pro- as opposed to a legally-mandated minimum wage or a "fair" wage. tection against unemployment" as well as "just and favourable remuneration ensuring for him/herself and his/her family an existence Some mining companies discuss benefits principles in the context of fair- worthy of human dignity supplemented, if necessary, by other means ness and equity. For instance, Alcan states that it supports a compensa- of social protection." tion system that is "internally equitable" and "externally competitive;" Anglo American states that it will determine conditions of employment The standards of other multi-stakeholder and non-public entities with in a manner that is "fair and appropriate;" Noranda states that it will se- regard to wages and benefits were considerably more general. lect and compensate employees "fairly based on qualifications and per- ICMM's Statement of Principles provides that it will work to formance without discrimination;" and Rio Tinto states that employees "[e]nsure fair remuneration and work conditions for all employees." are entitled to "fair and just remuneration policies and practices." Unlike the footwear and apparel sector, and like the oil and gas sector, Other companies state that they try to establish compensation and ben- the mining sector does not set benchmark criteria to determine efits policies for their employees that are comparable to those of other whether facilities have complied with compensation requirements-- T H E M I N I N G S E C T O R 35 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 36 such as ensuring that employees have access to understandable infor- Mineral Policy Institute, state that companies "must recognise that mation about their wages and benefits and that legally mandated ben- everyone has the right to rest and leisure, including reasonable limita- efits are paid in full and in a timely manner. tions of working hours and periodic holidays." Only the Australian Parliament's proposed Code makes specific reference to the numbers Inasmuch as there is an "emerging" trend to provide minimum wage of hours that employers should require: "An overseas corporation and benefits to employees, it conforms with ILO Recommendation must: ... [n]ot require its employees to work for more than 5 consec- No. 116 on the Reduction of Hours of Work. utive hours without a break of at least 20 minutes; [n]ot require its em- ployees to work more than 12 hours each day; [and n]ot require its 3.2.4 Hours of Work employees to work more than 48 hours each week without the agree- Again, due to the inherent differences between the extractive indus- ment of the employees." tries and the previously surveyed industry sectors, virtually none of the mining companies provide specific policies governing hours of Based solely upon the information collected, the emerging trend with work for employees. This is in sharp contrast to the footwear and ap- regard to hours of work is that they should at least meet minimum legal parel companies, virtually all of which cap combined work and over- standards or industry standards, and this trend therefore meets some time hours at 60 hours per week and stipulate that employees must be of the chief demands inherent in ILO Recommendation No. 116 on given at least one day off in every seven. "Regular" working hours in Reduction of Hours of Work. That ILO Recommendation states in part the other industry sectors are almost always the lesser of 48 hours per that hours of work should be at least the prevailing industry standard, week or domestic legal limits and overtime is typically no more than although it also provides far more comprehensive rights than those 12 hours per week and must be voluntary and not demanded on a reg- guaranteed by most mining companies. ular basis. Only two mining companies surveyed provide specific caps on hours 3.2.5 Non-Discrimination and Diversity of work in their codes of conduct. Union Cement states that it is im- The codes of conduct for virtually all mining companies and non-cor- plementing a forty hour work week at all of its operations. Norsk porate entities give some guarantees against non-discrimination. As Hydro has a more extensive policy, providing that "[u]nder normal cir- discussed in the analysis of the oil and gas sector (Section 2.2.5), this cumstances, on a weekly basis, an employee should not work in ex- is a critical issue to many employees hired by extractive industries, in- cess of 48 hours and 12 hours overtime, and should be given a cluding mining companies, particularly if such companies are operat- minimum of 24 hours continuous rest." Norsk Hydro also states that ing in nations that do not provide restrictions against certain types of "where operation of the business makes it necessary to deviate from discrimination in their domestic laws and regulations. These anti- this, measures should be taken to secure sufficient time of rest between discrimination guarantees vary in coverage, however (e.g., whether each working period." solely for hiring and employment practices or also for such practices as advancement and retirement), and breadth (e.g., governing solely Most of the non-corporate entities surveyed do not specifically address "core" personal characteristics such as age, race, and gender, or also hours of work, although those issues are frequently subsumed into including less traditional characteristics such as sexual orientation and statements on compensation and benefits. ICMM's Statement of Prin- political opinion). ciples provides that it will "[e]nsure fair remuneration and work con- ditions for all employees," and the Principles for the Conduct of Most mining companies have policies that prohibit discrimination on Company Operations within the Minerals Industry, produced by the the basis of race, gender, nationality, religion, and age. A number of 36 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 37 companies also specifically prohibit discrimination on the basis of dis- places. Norsk Hydro's policy provides that "[w]e regard diversity as ability. Companies with more expansive prohibitions include BHP an important source of innovation and healthy decision-making. We Billiton, which prohibits employment decisions based on personal as- therefore set diversity targets in relation to gender, experience, age and sociations, political beliefs, marital status, sexual orientation, and fam- cultural background." Noranda states that it "will adapt work envi- ily responsibilities. Noranda, Alcan, Norsk Hydro, and Rio Tinto also ronments and provide job aids where possible to make sure job access prohibit discrimination on the basis of sexual orientation. Phelps is offered to employees with disabilities" and that the company Dodge notes that it prohibits discrimination on the basis of veteran sta- "makes it a priority to hire from local communities to the fullest pos- tus and "participation in protected activity," including opposition to sible extent and to provide access to employment opportunities for prohibited discrimination or participation in statutory complaint aboriginal persons, individuals with disabilities and other minorities." processes. Freeport-McMoRan also states that "special efforts will be made to A number of companies also make clear that their policies apply to train and hire people indigenous to each operational or exploration other members of their sourcing chain. BHP Billiton's policy against area" and Rio Tinto states that it "employs on the basis of job re- discrimination applies to employees and to decisions related to sup- quirement...[but] [w]e may make exceptions to favour local employ- pliers, customers, contractors, and other stakeholders. Noranda's pol- ment where local laws provide." icy covers "business dealings with customers, suppliers, regulatory Some mining companies offer explicit provisions on gender equality. agencies and the general public" and the company states that it "stands Of note, CEMEX established a "Women's Integral Development Pro- for fairness and will not condone or tolerate discrimination of or by its gram" that assists "female employees...in maintaining a balance be- employees." tween work and family." Some companies do not identify specific forms of discrimination that The codes of virtually all companies prohibit discrimination in hiring are prohibited, but instead provide more general statements against and employment practices, and many of these companies define "em- any type of discrimination. Alcoa states that "[w]e recognize, respect ployment practices" to include wages, benefits, training, advancement, and embrace the cultural differences found in the worldwide market- termination, demotion, and retirement. place." Anglo American notes that it is "committed to workplace equality and will seek to eliminate all forms of discrimination" and With particular regard to recruitment and advancement, several com- that it is "committed to treating employees at all levels with respect panies specifically state that employment is based on merit. For ex- and consideration" and to "ensuring that their careers are not con- ample, BHP Billiton mandates that "[e]mployment with BHP Billiton strained by discrimination." Newmont's policy provides that "[c]ul- is offered and provided on the basis of merit," and CEMEX states that tural diversity is embraced and awareness training ensures cultural the recruitment of employees is based on "ability and career experi- difference is not a barrier to a positive work experience," while Teck ence, as well as alignment with corporate values." Cominco states that "[w]e are committed to providing a workplace Many of the non-corporate entities also provide policy statements re- free of discrimination where all employees can fulfill their potential garding discrimination. For example, ICMM's policy stipulates that it based on merit and ability." will "[e]nsure that appropriate systems are in place for ongoing inter- In addition to prohibiting any discrimination, some mining companies, action with affected parties, making sure that minorities and other like oil and gas companies, take the additional, pro-active step of marginalised groups have equitable and culturally appropriate means specifically encouraging initiatives that help to diversify their work- of engagement." T H E M I N I N G S E C T O R 37 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 38 Thus, the emerging trend with regard to anti-discrimination measures "[s]exual harassment is an act of a sexual nature that may result in ad- advocates opportunities based primarily on merit. In determining verse working conditions, including: creation of an intimidating, hos- whether the companies' anti-discrimination and diversity mechanisms tile or offensive work environment; interference with an individual's conform to international standards, some mining companies cite their work performance; and/or limitation of an individual's opportunities adherence to specific international standards. There is no dearth of law for employment or advancement; unwanted sexual advances, sexual proscribing racial and ethnic discrimination. Pursuant to the UDHR, jokes, subtle or overt pressure for sexual favors, sexual innuendoes, "Everyone is entitled to all the rights and freedoms set forth in this De- and offensive propositions." Phelps Dodge, Placer Dome, and Rio claration, without distinction of any kind, such as race, color, sex, lan- Tinto also specifically prohibit sexual harassment in their policies. guage, religion, political or other opinion, national or social origin, Some companies also define how situations involving harassment will property, birth or other status." be addressed within the firm. Norsk Hydro states that violations of its Many of the mining codes analyzed conform in some part to ILO Con- Code of Conduct "will not be tolerated and may, in accordance with vention No. 111 on Discrimination in Employment and Occupation, relevant legislation, lead to internal disciplinary actions, dismissal or which also prohibits discrimination in access to employment, training, even criminal prosecution." Teck Cominco's policy notes in consid- and working conditions on grounds of race color, gender, religion, na- erable detail the steps the company takes to prevent and address ha- tional origin, social origin, or political opinions. They also conform in rassment. The company has "ethics committees that operate in every some part to the commitments expressed in ILO Convention No. 100, business unit and receive and investigate any misconduct reports," and Equal Remuneration, concerning equal pay for equal work, regardless company policy describes a range of disciplinary actions that may be of gender. taken in misconduct cases, ranging from a report to the employee's immediate supervisor to reports to senior management recommending Many of the code provisions also match commitments in the UN reprimands, probation periods, or dismissal. Norms, which state that transnational corporations shall "ensure equality of opportunity and treatment, for the purpose of elimination Phelps Dodge notes in particular the range of its coverage, stating that of discrimination based on race, color, sex, religion, political opinion, its company policy covers "all employees of the company and covers nationality, social origin, indigenous status, disability, age or other sta- harassment by anyone in the workplace, including supervisors, co- tus of the individual unrelated to the individual's ability to perform workers, or non-employees." Anglo American, Newmont, WMC Re- his/her job." sources, and Union Cement do not provide specific policies or guidelines regarding harassment. 3.2.6 Harassment, Abuse, and Disciplinary Action Notably, as with the oil and gas companies, few of the mining com- Most, but not all, of the mining companies analyzed publish policy panies offer specific policies about corporal punishment, or coercive, statements prohibiting harassment, abuse, and improper disciplinary exploitative, or psychologically abusive behavior. This is in marked action. A smaller subset of these companies specifically define the contrast to the firms in the other, non-extractive, industry sectors. types of harassment prohibited, such as sexually abusive or exploita- Of the non-corporate entities surveyed, those that maintained any tive behavior. policies at all regarding harassment had only very general policies. For A number of companies address sexual harassment. Alcan notes that example, the Mining Association of Canada states that it "[r]espects it prohibits sexual harassment and gives it the following definition: human rights and treats those with whom we deal fairly and with dignity," 38 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 39 and the ICMM provides in its Statement of Principles that it will of countries where Barrick Gold operates, the ability to form associa- "[i]mplement policies and practices designed to eliminate harassment tions and/or collective bargaining units is inherently protected by gov- and unfair discrimination in all aspects of our activities." The Mineral ernment labor law." Norsk Hydro provides only a limited statement, Policy Institute, the Minerals Council of Australia, and the World Coal that it "recognizes the right to collective bargaining." Institute do not offer specific policies addressing harassment. Some company codes are more dependent on the extent of local law re- There are few international standards on workplace harassment or garding collective bargaining rights. For example, Freeport-McMoRan abuse, although the policies of most of the companies analyzed largely states that it "will obey the laws and regulations of the host country with comply with the Commentary to the UN Norms, which provides that respect to ... fair employment practices." Rio Tinto "recognizes that it "no worker shall be subject to direct or indirect physical, sexual, racial, is the choice of each employee as to whether or not they wish to join a psychological, verbal or any other discriminatory form of harassment trade union," but provides that it is "comfortable with collective bar- or abuse." Most company policies do not, however, include other por- gaining arrangements, individual arrangements, or a mixture of these." tions of this same Commentary, which provides that "no worker shall Of the companies analyzed, BHP Billiton provides the most compre- be subject to intimidation or degrading treatment or be disciplined hensive explanation of its policies in this area, and the clearest dis- without fair procedures." tinction between the rights of freedom of association and collective bargaining. The company's policy states, "[w]e fully recognize the 3.2.7 Freedom of Association and Collective Bargaining right of our employees to freely associate and join trade unions, how- As with the companies in the oil and gas sector, the issues of freedom of ever our position with respect to collective bargaining is more com- association and collective bargaining are among the most important labor plex. The majority of our employees worldwide currently work under rights standards that mining companies address. They are difficult, in collective agreements. ... Many of our operations have a mix of col- part, because national laws differ dramatically regarding the protection lective and individual arrangements. In these instances, prospective of these guarantees. Mining companies operate in a range of countries, employees are made aware of the employment arrangements under some of which have well-entrenched rights of freedom of association, which they will be required to work if they choose to join the Com- and others which provide few if any legal protections for such rights. pany. At all times our businesses comply with local employment Some codes of conduct reflect the inherent difficulty of enforcing arrangements under which they will be required to work if they choose these rights by stipulating that they are protected to the extent possi- to join the Company." The company also references its commitment ble under local law. As a result, many company codes and non-corpo- to the UDHR and its participation in the UN Global Compact. Placer rate entities refer generally to "recognizing and respecting lawful Dome also notes its participation in the UN Global Compact. rights" of freedom of association and collective bargaining. Alcan Newmont, Noranda, Phelps Dodge, Teck Cominco, WMC Resources, states that "[w]hile the Company will promote its position in a fair and CEMEX, and Union Cement do not maintain specific public policies legal manner, we recognize the right of employees to organize legally regarding freedom of association and collective bargaining. and bargain collectively." Similarly, Alcoa provides that it "recog- nize[s] and respect[s] the freedom of individual Alcoans to join, or The Minerals Council of Australia, the Mining Association of Canada, refrain from joining, legally authorized associations or organizations." the National Mining Association, and the World Coal Institute also do Barrick Gold notes that it "[r]espects the rights of employees to freedom not promote specific policies regarding freedom of association and of association and collective bargaining," and that "[i]n the majority collective bargaining. Other non-corporate entities provide very minimal T H E M I N I N G S E C T O R 39 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 40 and broad policy statements in this area, such as ICMM, which states that These categories were added because many mining, oil, and gas com- it will "[p]rovide for the constructive engagement of employees on panies provide statements on these subjects to augment their commit- matters of mutual concern." ments regarding freedom of association and collective bargaining. Due perhaps to the fact that the extractive companies play a dominant The Australian Parliament's proposed Code specifically provides that role in the communities in which they operate, unlike many light man- "[a]n overseas corporation must: Respect the freedom of its workers to ufacturing companies, they frequently draft and implement more com- associate... Respect the right of its workers to organize independently prehensive labor policies. Thus, unlike other industry sectors, they are and bargain collectively." The Principles for the Conduct of Company particularly concerned with sustainable development activities that Operations within the Minerals Industry, produced by the Mineral Pol- provide them with a long-term workforce. This focus on sustainable icy Institute, also has a specific formulation of the right, providing that development also gives extractive companies more of an incentive to "[c]ompanies must recognise the right of everyone to form trade unions invest in activities like training and education. and join the trade union of his/her choice...No restrictions may be placed on the exercise of this right other than those prescribed by law." The In- There are not many international standards by which to compare these stitute also states that "[c]ompanies must recognise the right to strike, statements on labor/management relations or training and education. provided that it is exercised in conformity with the laws of the particu- The standards that are most on par are probably those contained in the lar country," and that "[c]ompanies should promote collective bargain- ILO Tripartite Declaration. ing as the most fair way for the employer-employee relationship." Few mining companies provide specifics regarding their training ini- Pursuant to the UDHR, "Everyone has the right to freedom of peace- tiatives, although many companies have general statements supportive ful assembly and association." Art. 20(1), and "the right to form and of training. Anglo American states that "[w]e will provide employees join trade unions..." Art. 23(4). ILO Convention No. 87, concerning with opportunities to enhance their skills and capabilities, enabling Freedom of Association and the Right to Organize, establishes the them to develop fulfilling careers and to maximize their contribution to right of all workers and employers to join organizations of their own our business." BHP Billiton provides its "employees with on-the-job choosing and lays down a series of guarantees for the free functioning training" and it "support[s] their ongoing education," and Barrick Gold of such organizations. ILO Convention No. 98 provides for the Right similarly "[p]rovides employees with job training and skill develop- to Organize and Collective Bargaining. ment, which can also extend into the classroom for specific training." Although most codes of conduct do not come close to providing the Placer Dome's sustainability policy ensures that the company will rights inherent in the ILO Conventions with regard to freedom of as- "provide training and resources to develop employees and build com- sociation, the emerging trend is close to fulfilling the mandate of the petencies related to environmental and social responsibilities." Rio UN Global Compact, which provides that "[b]usinesses should uphold Tinto states in its code that "[w]e improve our skills and competencies the freedom of association and the effective recognition of the right to by...undertaking education, training and coaching as appropriate." collective bargaining." Union Cement provides employees "appropriate training and support thereby maintaining a competent, quality and environment conscious and reliable workforce." 3.2.8 Labor/Management Relations, Training, and Education The categories of labor/management relations and training and edu- The non-corporate entities analyzed provide more details regarding cation were added to the extractive industry matrices even though they their training policies than the mining companies. ICMM's Statement were not included in the matrices for the previous industry sectors. of Principles mandates that it will "[p]rovide sustainable development 40 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 41 training to ensure adequate competency at all levels among our own in the analysis accompanying the oil and gas sector, the companies that employees and those of contractors." adhere to the Voluntary Principles have already emerged as industry lead- ers, by virtue of their recognition of the role of human rights issues in se- With regard to labor/management relations, few mining companies curity matters and their implementation of the Voluntary Principles. have specific statements or policies. Among those that do, Alcan pro- vides that it will work with employees and employee representatives Rio Tinto has particularly comprehensive policies with regard to se- "to resolve labor issues or contract negotiations in a professional and curity. It states, in conformity with its obligations under the Voluntary equitable manner." Anglo American states that the company "will pro- Principles, that its "procedures for using security personnel are based vide appropriate procedures for the protection of workplace rights and on human rights principles and include guidelines and restrictions on our employees' interests." the use of force. These procedures are reinforced by training and ap- Norsk Hydro's policies note the need for communication between plied to contract security personnel as well as to Group employees." labor and management. Stating that it takes part in "a constructive and Rio Tinto affirms that its "concern for Human Rights...should influ- open dialogue" with employees, the company notes that its managers ence the way in which we relate to police and military forces. Where "should communicate regularly" with those that report to them and the rights of employees or local communities are threatened, we give those employees "the opportunity to present their ideas, com- should seek to persuade state forces to uphold international standards, ments and suggestions for improvement." seeking to ensure that Rio Tinto equipment is not used to violate rights, and pressing for investigation of credible allegations." Rio A number of non-corporate entities also provide statements and poli- Tinto also provides that it should "make sure financing, training or cies with regard to labor/management relations. These include equipment" is "not used to violate human rights," and it seeks to ICMM's Statement of Principles, which provides "for the constructive "make clear Rio Tinto's strong disapproval of human rights violations engagement of employees on matters of mutual concern," and the and press for investigation and prosecution." Australian Parliament's proposed Code, which states that "[a]n over- seas corporation must enable any complaints about conditions of Mining companies that are not participants in the Voluntary Principles labour to be forwarded to independent authorities...[and] [c]omply provide either very general statements with regard to security prac- with minimum international labour standards." tices, or none at all. Alcan states that it "must be aware of dealings with countries that are involved in conflicts or that are subject to interna- 3.2.9 Security Practices tional sanctions" and notes that it is "committed to ensuring the safety As noted in the discussion of security practices with regard to oil and of our employees as well as the security of our assets." Alcoa, Barrick gas companies, security is perhaps the single most important human Gold, Noranda, Phelps Dodge, Placer Dome, Teck Cominco, WMC rights issue to extractive companies. The international standard on this Resources, and Union Cement do not provide specific statements or issue is the Voluntary Principles on Security and Human Rights (Vol- policies regarding security practices. untary Principles) developed by the U.S. and U.K. governments in De- cember 2000. For a fuller discussion of the Voluntary Principles, please refer to Section 2.2.9. 3.3 Findings Regarding Environmental Standards Freeport-McMoRan, Newmont, Norsk Hydro, and Rio Tinto were In the mining sector, as with companies in the oil and gas sector, many among the companies and NGOs that participated in the creation of the of the statements of principle and codes of conduct provide general, Voluntary Principles, and BHP Billiton is now also a participant. As stated over-arching statements supporting a "safe and healthy working envi- T H E M I N I N G S E C T O R 41 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 42 ronment" and compliance with applicable laws. These general policy Many of the mining companies currently have, or state that they will statements with regard to environmental issues, including health and have, all facilities certified as ISO 14001 compliant. Rio Tinto stipu- safety matters, are designated for all codes in the first column of the lates that it hopes to have all facilities certified by the end of 2003, environmental matrix. Alcan and Anglo American state that all facilities will be certified in 2004, and Alcoa states that its goal is full ISO 14001 certification by Environmental commitments, however, are less often found in com- the end of 2005. Notably, Union Cement states that all plants are cur- pany codes of conduct than in the documents or policies that describe rently certified to ISO 9002 and ISO 14001, and that the company is the companies' commitments on an ex post facto basis (e.g., Annual now working towards ISO 18001 certification. Reports, Statements of Emissions and Waste, etc.). This material was isolated and grouped into the appropriate categories on the matrices, A number of the other mining companies state that their EMS stan- as inspired by the GRI Guidelines. dards and assessment systems were developed in a manner consistent with ISO 14001 principles, including Barrick Gold, BHP Billiton, Some of these categories, such as those on "suppliers" or "transport," Newmont, Noranda, Teck Cominco, and WMC Resources. Norsk are not as applicable to the mining sector as other industries. As a re- Hydro uses ISO 14001 "as a guideline" to "integrate environmental sult, although the "international standard" for these categories was in- objectives and targets in business planning." cluded in the final row of the matrix, there was not enough information BHP Billiton states the scope of its Health, Safety, Environment, and from the codes to determine whether there were emerging trends in Community (HSEC) Management Standards "covers all operational these categories. In the following environmental areas, however, suf- aspects and activities that have the potential to affect, positively or ficient information was gleaned from the codes to highlight key prac- negatively, the health and safety of people, the environment or the tices, and emerging trends. community." These HSEC Management Standards include in their ob- jectives providing "a risk-based HSEC management system frame- 3.3.1 General Policy Statement and EMS Standards work, consistent with the BHP Billiton Enterprise Wide Risk One clear trend apparent in all the codes is that companies increasingly Management Policy and with ISO 14001, OHSAS 18001, SA8000 use and implement Environmental Management Systems (EMSs). As and other internationally recognized standards." the World Bank/IFC Handbook states, EMSs such as ISO 14000 are Several of the non-corporate entities also make reference to ISO seen as mechanisms for achieving improvements in environmental 14001 and other international standards. The European Commission performance and for supporting the trade prospects of "clean" com- notes that proposed revisions of its Community Eco-Management & panies. Additionally, companies almost uniformly mandate compli- Audit Scheme will integrate ISO 14001 standards. ance with applicable and relevant environmental regulations and laws, and almost uniformly mandate the provision of a safe and healthy Notably, many of the non-corporate entities do not have specific rec- working environment. ommendations with regard to environmental standards, although most provide general policy statements in favor of environmentally re- There is also an emerging trend among the codes of conduct ana- sponsible operations. The European Commission, however, refer- lyzed that, for those companies with an EMS, the system should allow ences European Union (EU) Council Directive 96/82/EC, the "Seveso the company to incorporate environmental matters into its business Directive," which "obliges industrial operators to put into effect Safety decisions. ISO 14001 is the recognized international standard for Management Systems, including a detailed risk assessment on the EMSs. basis of possible accident scenarios." 42 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 43 The Principles for the Conduct of Company Operations within the frequently quite weak on these issues and provides for few health-re- Minerals Industry, produced by the Mineral Policy Institute, provide lated safeguards in many developing nations, or whether they adhere that "[e]nvironmental standards should aim towards ever-increasing to some form of international or best practices. There appears to be an international best practice" and notes "[t]here are no international en- emerging consensus that the most multinational of the mining com- vironmental agreements specifically governing how mining and other panies utilize best international standards. In noted contrast, however, mineral industry projects should be managed." Those Principles ad- mining companies as a whole did not place the same emphasis on uti- vocate that though there are a variety of international agreements,1 lizing best international standards as the companies in the oil and gas which may be directly or indirectly relevant in a general sense, sector. Although virtually all of the mining companies express a clear "[c]ompanies should agree to best practice targets being defined not commitment to ensuring a safe workplace, many do not benchmark by companies, but by independent committees comprising scientists, their policies and safety records to existing standards, legislation, regu- other experts (e.g. social scientists) NGOs community representatives, lations, or established public goals. and company representatives." They also warn that "[c]ompanies Among the mining companies with the most comprehensive HSE must publicly recognise that mining in its basic form of simple ex- standards is Placer Dome, which states that it will integrate "the high- traction of a non-renewable resource cannot be considered sustainable est safety standards through exploration, design, construction, oper- and should not be portrayed as such." ations, and closure" and will "[a]pply `best practices' to ensure that As an international benchmark on the issue of environmental impact our health and safety performance is recognized as a world leader." assessments, the IFC Guidelines state that "EMSs such as ISO 14000 The company will also "[s]trive for continual improvement in our are seen as mechanisms for achieving improvements in environmental health and safety performance by setting and reviewing achievable performanceandforsupportingthetradeprospectsof`clean'companies." targets." 3.3.2 Health and Safety Some companies provide specific information about their safety and Occupational safety and health issues are of particular concern to com- health objectives. Alcoa established clear goals for reduction of work- panies and non-corporate entities engaged in the extractive sectors, place hazards, including "95% or more of workplace health hazards particularly including the mining sector. In addition to general state- adequately measured by year-end 2003." Rio Tinto established a goal ments about health and safety matters in most companies' guiding of a "50% reduction in the lost time injury frequency rate by the end principles statements, virtually all multinational enterprises maintain of 2003, from 2002 levels." very comprehensive and detailed HSE guidelines and policies. These As with the companies in the oil and gas sector, many of the mining were drawn from when applicable, and examples from HSE materials companies place a particular emphasis on prevention of health and are included in the matrices. The examples of HSE policies chosen for safety issues, including Teck Cominco, which states that it will inclusion in the matrices were all fairly general in their applicability. "[s]trive to identify and eliminate or control all safety and health haz- Perhaps the most critical issue with regard to HSE is whether compa- ards and monitor worker health performance to continually reinforce nies and other entities only apply applicable domestic law, which is a company-wide commitment to excellence." 1Such international agreements include the Convention on Wetlands of International Importance (the Ramsar Convention), the World Heritage Convention, and the Rio Declaration on Environment and Development. T H E M I N I N G S E C T O R 43 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 44 Many of the non-corporate entities provide policies that highlight the equipment and vehicles. Employers operating underground mines need for effective accident prevention and management of workplace should also provide a safety station on each mine level and ensure that hazards. The Mineral Council of Australia's "Operator/Contractor air, water, and electrical connections are available to the surface. Each Safety and Health Management" mandates the "implementation of a level of an underground mine should be capable of being sealed off plan to effectively identify and manage safety and health issues." The from the rest of the mine during an emergency. Both sets of Guide- European Commission references EU Council Directive 92/104/EEC lines for Mining and Milling stipulate that employees should be pro- which "sets minimum requirements for improving the safety and vided with proper safety equipment; conveyors and other machinery health protection of workers in surface and underground mineral ex- must be equipped with emergency stops; and that platforms, walk- traction industries." ways, and stairways must be equipped with handrails, toeboards, and non-slip surfaces. Although most corporate codes do not reference international bench- marks, the key ILO standards include Convention No. 155 on Occu- pational Safety and Health and Recommendation No. 164, also on 3.3.3 Energy Occupational Safety and Health. The World Bank/IFC Handbook There is a growing trend, particularly in the energy-related sector, for states that employers should be pro-active and preventive in their pro- public advocacy regarding energy efficiency. While most mining visions, by identifying hazards as well as through evaluating, moni- companies provide general statements regarding their commitment to toring, and controlling work-related risks. It also states that employers energy-efficient operations, in part through their use of improved tech- should provide appropriate occupational health and safety training for nology, some also give specific examples of their policies and practices. employees and be responsible for planning, implementing, and mon- BHP Billiton emphasizes the company's commitment to continual itoring programs and systems required to ensure occupational health improvement in the "efficient use of natural resources." Barrick Gold and safety standards on their premises. states that "[e]nergy conservation progress is measured and reported The Handbook also provides a range of general health and safety at each operation annually," and Noranda has established the objec- guidelines, including that installations should be designed and oper- tive of reducing energy consumption by 1% per year. Alcan states that ated to protect the health and safety of employees and the community it works to "use natural resources and energy more efficiently through in such areas as air quality, noise, confined spaces, general health, the effective use of management systems that continually improve En- general safety, training, and occupational health and safety monitor- vironment, Health and Safety (EHS) performance." ing. The emerging trend among mining companies is that many of the Some companies are establishing programs and targets to reduce their Handbook's broad parameters on health and safety issues are ad- energy consumption. Alcoa is increasing its use of hydroelectric dressed in their codes of conduct or guiding principles. power for its manufacturing and service operations, and CEMEX is The World Bank's Environment, Health and Safety Guidelines for also working to utilize alternative fuels and reuse waste materials. Open Pit Mining and Milling, and its Guidelines for Underground Anglo American established "Energy Efficiency Targets," Placer Mining and Milling, provide a range of safety standards particular to Dome is working to "[m]easure, track, report, research, [and] partici- mining. For example, the Guidelines for Underground Mining and pate in national discussions on energy use and GHG [greenhouse gas] Milling state that personnel should inspect the roof and sides of un- emissions." WMC Resources is establishing an inventory of all "sig- derground working areas before beginning operations, and that tun- nificantpotentialenergyuses,"developingan"energymanagementplan," nels must be large enough to allow employees to move around and considering the use of "alternative and renewable energy sources." 44 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 45 Some of the non-corporate entities also provide general statements Barrick Gold's policy emphasizes the need to reduce the impact of its about energy efficiency in their codes of conduct or guiding princi- operations on existing water resources. The company states that, prior ples. ICMM states that companies should "[c]onduct or support re- to the development of a mine site, it works to assess all impacts on search and innovation that promotes the use of products and water resources and that "measures to avoid or minimize effects are technologies that are safe and efficient in their use of energy, natural incorporated into project design and operations." It also conducts au- resources and other materials." The World Coal Institute is working dits to assess existing controls and to "help identify where further to "improve the technical and economic efficiency of energy conver- water protection opportunities exist." sion, thereby minimising resource use." Rio Tinto also has a comprehensive policy for the management of The World Bank/IFC Handbook provides that, where feasible, com- water consumption, ensuring that its water use and discharge planning panies should choose energy-efficient and environmentally sound "conforms to the water use requirements of other users within the processes. catchment." It stipulates that "[f]resh water use is to be reduced through process improvement, recycling of wastewater and, where practicable, by the use of poorer quality water" and that "[w]ater stor- 3.3.4 Water age, treatment and discharge facilities are designed...on best available Mining processes and operations are often very water-intensive, and practices." thus many mining companies provide specific policies regarding the reduction of water use and effective water resource management. Few of the non-corporate entities provide policies or statements with Some companies also address concerns regarding water pollution that specific reference to water conservation, though many of them have may result from their operations. The overall trend among companies policies that address resource use and conservation more generally. is toward a commitment to reduce water use in operations, and/or to The World Bank/IFC Handbook provides extensive water pollution use it more efficiently. standards, and urges conservation of water resources. The specific Mining companies measure themselves against both established do- guidelines regarding Base Metal and Iron Ore Mining note the partic- mestic as well as international standards. Alcan's policy provides it ular problems of acid mine drainage (AMD), effluent from tailings will "always endeavour to meet all local requirements as well as in- ponds, and surface runoffs. The guidelines also recommend that mine ternational standards for water use," and Phelps Dodge commits to development plans address a "water management plan focusing on the complying with the Clean Water Act. Newmont's policy states that effective use of mine water for operations (with recirculation of "[w]hen discharges to surface or ground waters are unavoidable" the process water)" and that pollution prevention measures could include company will comply with local legislation, and "[i]f country laws are minimization of freshwater intake, and "recycling of tailings decant non-existent, inadequate, or incomplete" the company will apply water and wastewater from the concentration process to minimize con- "U.S. EPA [Environmental Protection Agency] primary drinking taminated discharges to the extent feasible." water standards." The Handbook's guidelines regarding Coal Mining and Production Some mining companies have established water use reduction targets. similarly note the need for a water management plan, and state that a Alcoa has established a goal of "60% reduction in process water use mine's development plan should address "[d]iversion and manage- and discharge by 2008," and Anglo American has established "Water ment of surface and groundwater to minimize water pollution prob- Consumption Targets." lems." With regard to coal mining, the Handbook highlights the T H E M I N I N G S E C T O R 45 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 46 importance of proper planning for geological conditions, and stresses Barrick Gold emphasizes the need to consider biodiversity in particu- that if "groundwater systems are disturbed, the possibility of serious lar when closing mines, stating that "[b]iodiversity is assessed at all pollution from highly saline or highly acidic water exists." operations prior to their development" and that "[s]ite restoration in- cludes contouring the land, replacing topsoil, and seeding to re-estab- The World Bank Environmental, Health and Safety Guidelines for lish the native flora." Open Pit Mining and Milling, and for Underground Mining and Milling, provide standards regarding liquid effluents, and erosion and Notably, Teck Cominco admits that a recent evaluation of its opera- sediment control. Both sets of guidelines also state, with regard to tail- tions revealed the need to adopt a biodiversity policy. ings disposal, that "[m]arine discharges...must not have a significant adverse effect on coastal resources." Additionally, "[r]iverine discharges The majority of the non-corporate entities that have developed poli- are not acceptable" unless the project sponsor prepares documentation cies regarding biodiversity focus on the need to assess and reduce the regarding an "environmental analysis of alternatives" and the "effects on impact of company operations on the biodiversity of the regions where aquatic resources and downstream users of riverine resources." The they operate. Of note are the Principles for the Conduct of Company Open Pit Mining and Milling guidelines state that if "the mining opera- Operations within the Minerals Industry, produced by the Mineral Pol- tion involves a series of open pit operations, project sponsors must eval- icy Institute, which state "[m]ining or exploration should only occur uate the feasibility of using abandoned open pits for tailings disposal." where a company can demonstrate that such activity will not jeopar- dise the long-term viability of a species, [or] ecosystem." 3.3.5 Biodiversity Although there are few World Bank/IFC Guidelines regarding biodi- The issue of biodiversity arises somewhat regularly in mining com- versity that apply to the mining sector, the Handbook has lengthy mea- panies' codes of conduct and, if there is an emerging trend, it is simply sures devoted to conserving national habitats and ensuring the that companies are now striving to incorporate sensitivity for biodiver- protection of sustainable development. The IFC "supports the protec- sity issues into their business operations. Although some companies tion, maintenance, and rehabilitation of natural habitats and their func- had no specifically articulated statement on biodiversity issues, those tions in its project financing and advisory activities" and "expects that did focused on developing formalized processes for the considera- project sponsors to apply a precautionary approach to natural resource tion and management of the impact of their operations on biodiversity. management to ensure opportunities for environmentally sustainable development." The IFC will not support projects that, in its opinion, Alcoa's mandates that "[n]ew or expanding operations should docu- involve the significant conversion or degradation of critical natural ment the level of ecosystem and species diversity...by applying tech- habitats. In deciding whether to support a project with potential ad- niques, procedures, and information generally accepted by the verse impacts on a natural habitat, the IFC takes into account the proj- international scientific community." Anglo American stresses that all ect sponsor's ability to implement appropriate conservation and of its operations will soon adopt a biodiversity management strategy mitigation measures. that will include "[i]nvolving stakeholders in the development, imple- mentation, monitoring and review of biodiversity management plans" and "biodiversity training, awareness raising and education programs." 3.3.6 Emissions Rio Tinto developed a biodiversity strategy and formulated various The emerging trend with regard to emissions among mining companies, working groups to realize its biodiversity plan and policies, including as with companies in the oil and gas sector, is the general recognition an internal steering group and an independent external advisory panel. of the need to develop greenhouse gas (GHG) reduction programs. 46 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 47 A number of companies participate in multi-stakeholder initiatives to emissions levels selected must also be justified in the EIA and accept- reduce GHG emissions, such as the Greenhouse Gas Challenge pro- able to the World Bank Group. Specific levels are stipulated in the gram initiated by the Australian government. That program requires Handbook for such areas as liquid effluents and ambient noise, which companies to submit annual reports on their progress in reducing car- are typically acceptable to the World Bank. These emission levels bon dioxide emissions and to implement "an air emissions manage- "can be consistently achieved by well-designed, well-operated, and ment plan, including a monitoring strategy, to prevent or minimise well-maintained pollution control systems." environmental impact." Companies also commit to giving "consider- The World Bank Environmental, Health and Safety Guidelines for ation to potential future reductions in emission or ambient air quality Open Pit Mining and Milling, and the Guidelines for Underground standards when designing and constructing our facilities." BHP Billi- Mining and Milling, contain specific standards for liquid effluents, as ton, Pasminco, Rio Tinto, and WMC Resources all report that they well as for contaminants emitted into the ambient air. have participated in the Greenhouse Gas Challenge. In a similar en- deavor, Noranda and Teck Cominco participate in the Canadian Vol- untary Challenge and Registry. 3.3.7 Pollution Control and Hazardous Substances As with companies in the oil and gas sector, the emerging trend among Some companies make public reports about their current emissions re- mining companies regarding pollution control and hazardous sub- ductions and future emissions reduction targets. Norsk Hydro reduced stances is to measurably reduce hazardous waste release. its climate gas emissions by about 15% from its 1990 baseline. Alcoa established emissions reduction goals, from base year 2000, for a Many companies have established programs to monitor, understand, "60% reduction in SO2 by 2008," a "40% reduction in NOx by 2008," and reduce their releases of harmful emissions, and are now incorpo- and an "80% reduction in airborne mercury by 2008." It also plans to rating pollution concerns into designs for new facilities. Examples in- reduce GHG emissions at least 25%, and possibly as much as 50%, by clude Barrick Gold, which states that "measures to avoid or minimize 2010, from a 1990 base year. effects are incorporated into project design and operations." Similarly, Freeport-McMoRan now "plan[s] and conduct[s] the design, devel- Relatively few of the non-corporate entities have specific policies re- opment, operation, and closure of any facility...in a manner that garding the reduction of GHG, though the National Mining Associa- optimizes the economic use of resources while reducing adverse en- tion states that it is committed to "[s]upporting...voluntary programs vironmental effects." to improve efficiency and reduce greenhouse gas emission intensity." Companies are also researching new ways to reduce and store haz- There are extensive World Bank and IFC guidelines regarding emissions ardous waste. Placer Dome has developed principles on water and limits, and they support "a number of efforts to help...client countries re- cyanide management, acid rock drainage, and metal leaching. WMC duce emissions of greenhouse gases through measures such as promot- Resources is working to "investigate opportunities to progressively re- ing energy efficiency and increasing the use of renewable energy." duce the quantities of hazardous materials and encourage the use of less hazardous ones," as well as to "establish a program to decom- With regard to both Base Metal and Iron Ore Mining, and Coal Min- mission or upgrade all current below-ground storage tanks that do not ing and Production, the Handbook states that "emissions levels for the have double skins or cathodic protection." design and operation of each project must be established through the environmental impact assessment (EIA) process on the basis of coun- Few of the non-corporate entities have specific recommendations and try legislation" and the Handbook, as applied to local conditions. The policies regarding pollution control and the management of hazardous T H E M I N I N G S E C T O R 47 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 48 wastes. One exception is the Mineral Policy Institute, which makes water or irrigation purposes." It also provides that "[w]aste rock some specific recommendations, including that companies "should not dumps should be designed and engineered so that materials with high mine high sulphide ore-bodies unless steps are in place to prevent the potential to generate acid leachate are isolated from oxidation or per- effects of Acid Mine Drainage (AMD)," "should not be involved in colating water." the mining, milling or processing of uranium," and should "ensure that A final international standard, though one which none of the codes cite pollution of riverine, ground-water and marine environments does not specifically, is the Basel Convention on the Control of Trans-Bound- occur from waste rock dumps." In addition, "all environmental costs ary Movements of Hazardous Wastes and their Disposal, which works involved in mining, milling, transport and processing of minerals to reduce the movement of hazardous wastes. should be borne by the company as polluter/generator." The European Commission references EU Council Directive 3.3.8 Waste Management 96/61/EC on integrated pollution prevention and control which "cov- With regard to waste, there is an emerging trend among codes of con- ers minerals processing, including installations for the production of duct and guiding principles in the mining sector, to promote waste re- non-ferrous crude metals from ore." duction and research and implement recycling programs. The IFC has a host of general guidelines about the production, han- BHP Billiton has launched programs to ensure that "wastes are elim- dling, storing, transporting, and disposal of hazardous materials, and inated, reduced, re-used, recycled, treated or properly disposed." also establishes significant requirements under the IFC Hazardous Freeport-McMoRan has developed "a comprehensive waste man- Materials Management Guidelines. agement system" which includes "waste segregation for hazardous waste, inert waste, [and] biodegradable waste." Rio Tinto's policy With regard to specific guidelines for Base Metal and Iron Ore Min- aims to "ensure the physical and chemical stability of final disposal," ing, the World Bank/IFC Handbook notes that the "critical factors in "minimise the footprint of mineral waste disposal," "reduce non-min- good environmental performance in mining are adequate planning and eral waste," and "eliminate hazardous waste to the greatest extent effective management and implementation." Mine development plans possible." should address "[r]emoval, proper storage, and management of top- soil," "[e]arly restoration of worked-out areas and of topsoil heaps to Noranda is reducing "waste generation by selecting mine designs and minimize the extent of open areas," and "[i]dentification of potential technologies that minimize waste stripping, avoid ore dilution and max- areas for AMD generation, followed by planning for successive re- imize separation efficiency." Noranda is striving to reduce the volume mediation of pyrites to reduce AMD generation." The Handbook's and the hazardous nature of waste it is storing by working to "eliminate specific guidelines for Coal Production and Mining highlight these hazardous characteristics by reprocessing refinery by-products at other same issues, and also note the importance of controlling the release of facilities and through on-site treatment." Union Cement's waste man- chemicals used in "beneficiation processes," as well as the generation agement program is trying to reduce "the generation of wastes by prevent- and release of methane so as to minimize the risk of explosions. ing production rejects, reusing and recycling materials where applicable, and...treating and disposing properly all wastes we generate." The World Bank Environmental, Health and Safety Guidelines for Open Pit Mining and Milling state that "[s]olvents and similar haz- Many of the non-corporate entities champion general policies that ad- ardous materials" should not be disposed of in a way likely to conta- vocate pollution control, but only a few provide specific recommen- minate ground water if "groundwater is potentially useable for potable dations and policies regarding waste management. The Principles for 48 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 49 the Conduct of Company Operations within the Minerals Industry, 3.3.9 Suppliers produced by the Mineral Policy Institute, challenge companies that are As explained in Section 2.2.9, this category of the matrix distills and vertically integrated to "produce reports showing how the company is highlights the policies of the analyzed companies regarding the ap- achieving recycling of metal products," and those that are not verti- plicability of their codes of conduct to suppliers or others in the sup- cally integrated to "demonstrate agreements with other companies ply chain, but not to direct employees of the companies. The material which set out goals for metals recycling targets of goods produced in this category is tailored solely to the applicability of environmental from company minerals." policies to suppliers, whereas the "Third Party Applicability" category in the socio-economic matrix is more general in the scope of the poli- The European Commission references EU Council Directive cies analyzed. 99/31/EC which establishes requirements for the authorization, tech- nical construction, types of waste acceptable, and monitoring proce- Due to the lack of significant information, it is difficult to determine dures for landfills "including tailing ponds." EU Council Directives whether there is an emerging trend in this area, but from the little in- 75/442/EEC and 91/156/EEC require member states to ensure that formation obtained, companies try to seek partners that have policies waste from "prospecting, extraction, treatment, and storage of mineral consistent with their own. Although there are no applicable interna- resources and the working of quarries is recovered or disposed of with- tional standards with which to compare these efforts, particularly with out endangering human health and without using processes or meth- specific regard to environmental measures, some mining companies ods which could harm the environment." have adopted policies regarding the commitments of suppliers. The World Bank/IFC Handbook guidelines on Base Metal and Iron A number of the mining companies state that they communicate with Ore Mining state that "tailings must be managed to optimize human their current and potential suppliers regarding their environmental, safety and environmental protection." The Handbook also provides health, and safety concerns, and some companies state that they select that "the design of the tailings managements system must address suppliers that are seen as supportive of the company's environmental postclosure issues such as the long-term geotechnical stability of the goals. Norsk Hydro addresses its suppliers' environmental challenges impoundment, the chemical stability of the tailings, long-term surface and commits to "influence [its] partners to perform in accordance with and groundwater management...and restoration." Regarding specifics [its] policy." Norsk Hydro also "emphasizes care for the environment for Coal Mining and Production, the Guidelines note the problems in [its] selection of suppliers." with subsidence of underground mines. Alcan works to "[c]onsider and establish appropriate EHS require- ments when selecting business partners and contractors." Rio Tinto The World Bank Environment, Health, and Safety Guidelines for provides that it will inform potential suppliers that it "views favor- Open Pit Mining and Milling, and for Underground Mining and ably" those companies "with a proactive programme on climate Milling, state that mine operators should "recycle and reclaim materi- change." Alcoa purchases supplies "in support of EHS values." als where possible" and provide that "[o]n-land tailings impoundment systems must be designed and constructed in accordance with inter- Other companies only commit to informing their suppliers of their nationally recognized engineering practices, local seismic conditions, goals. Union Cement works to "[p]romote safety, health, and envi- and precipitation conditions. On-land disposal systems should be de- ronmental awareness among our...suppliers [and] contractors." BHP signed to isolate acid leachate-generating material from oxidation or Billiton strives to "[c]ommunicate with and engage" suppliers to "share percolating water." responsibility for meeting the requirements of [its HSEC policy]." T H E M I N I N G S E C T O R 49 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 50 Similarly, with regard to the company's environmental policies, Pas- social costs involved in the transport and trade operations can be minco provides that it will inform "suppliers of our aim and of their avoided or minimised." responsibilities in relation to our business." 3.4 Findings Regarding Socio-Economic Very few of the non-corporate entities provide policies regarding com- and Community-Related Issues pany interactions with suppliers. ICMM states that companies should "encourage customers, business partners, and suppliers of goods and As discussed in greater detail in Section 2.4, this second part of the services to adopt principles and practices that are comparable to our code of conduct project includes additional matrices that illustrate the own." The Mining Association of Canada notes that it will "[r]equire companies' commitment to socio-economic and community-related contractors and suppliers to comply with corporate environmental re- issues--in addition to their commitments to human and labor rights is- quirements" and that it will work "cooperatively with suppliers to sues and environmental standards. The attached matrices outline com- identify opportunities to improve environmental performance." pany policies in a variety of areas that demonstrate the critical role mining companies play in the communities in which they operate. The 3.3.10 Transport importance of this role is due to a variety of factors, including the long- The industry standard with regard to transportation issues is that compa- term nature of the companies' commitment to a particular locale and nies demonstrate a general commitment to improving transportation the limited number of companies in a single geographical area. safety. There is no international standard to which this emerging indus- Accordingly, this matrix includes policies the companies or non- try standard can be compared and there are no IFC or World Bank Guide- corporate entities have crafted on such key societal issues as bribery, lines regarding transport, independent of waste management guidelines. corruption, financial transparency, political contributions, competition Very few companies in the mining sector have developed policies re- and pricing, local economic development, indigenous people, land garding transportation issues. Barrick Gold requires product suppliers rights, resettlement, and displacement. to transport materials safely and to maintain effective emergency re- There are also two additional categories represented in the matrices sponse capability in case of accidents. BHP Billiton promotes respon- for the mining sector that were not included in the similar analysis for sible transport of its products and by-products to minimize their life the socio-economic categories in the oil and gas sector--"mine clo- cycle impacts. Norsk Hydro notes that its overall goal of minimizing sure" and "artisinal and small-scale mining." The "mine closure" cat- the adverse effect of its products implies "optimization of transport in- egory evaluates policies and plans for the closure of mines and the ternally and externally." management of mine sites, which are critical issues for mining com- panies, both due to environmental concerns and the economic and so- Of the non-corporate entities, only the Principles for the Conduct of cial impacts of closed sites on local communities. "Artisinal and Company Operations within the Minerals Industry, produced by the small-scale mining" refers to mining efforts by individuals, groups, Mineral Policy Institute, provide a specific policy regarding trans- families, or cooperatives with minimal or no mechanization, often in portation issues. The Principles state that companies "should prepare the informal or illegal sector of the market. a plan to deal with a range of potential accidents and environmental emergencies associated with mining. These should include off-site ac- Virtually none of these policies are contained in traditional codes of con- tivities such as transport." The Principles also recommend that com- duct. Instead, most companies present these policies in a range of sup- panies "identify mechanisms by which all the environmental and plementary materials, many of which outline much more comprehensive 50 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 51 efforts at sustainable development. Therefore, although best efforts The second category in the socio-economic matrices is titled "Social were employed to effectively summarize these materials in the matri- Impact Assessment." The information in this category seeks to deter- ces, the original documents should also be reviewed to obtain the mine how a company assesses the direct economic impact it has on the fullest possible understanding of these frequently complex policies. local communities surrounding it. Therefore, it acts in part as a paral- lel category to the "EMS Standards" category in the environmental It is particularly challenging to establish an emerging trend in the area matrices. It was difficult to determine an industry standard for this cat- of socio-economic and community-based issues, and this is made even egory because only a few companies surveyed conduct explicit social more difficult by the fact that there are relatively few international impact assessments (SIAs) before commencing operations in a given "standards" for these categories. While some standards provide an in- area. It is possible, however, that some companies conduct SIAs as ternational baseline--such as ILO Convention 169 on Indigenous part of their environmental impact assessments (EIAs), and therefore Rights or World Bank Operational Directive 4.30 on Involuntary do not address the issue of SIAs separately. There are also no interna- Resettlement--most categories in these matrices do not lend them- tional standards regarding the use of SIAs by which to compare the selvestoaninternational"standard."Accordingly,thepoliciesarefrequently various policies. compared to the UN Norms, which addresses many socio-economic and community-related issues, but which is not technically an inter- The second to last category is "Voluntary Initiatives," which aggre- national benchmark since it has not yet been adopted by the UN or any gates the various standards to which companies adhere, including the nation. Global Sullivan Principles (Freeport-McMoran), the UN Global Com- pact (BHP Billiton, Placer Dome, Norsk Hydro, and Union Cement ), As with the socio-economic matrices for the oil and gas sector, there the Voluntary Principles on Security and Human Rights (BHP Billi- are several categories included on the accompanying matrices for the ton, Freeport-McMoRan, Newmont, Norsk Hydro, and Rio Tinto), mining sector for which there is no accompanying narrative. This oc- and other international initiatives. Obviously, there is no need to com- curs primarily when it is difficult to discern an emerging trend, given pare these with other international standards. the limited data collected, or when there is no relevant international "standard" that would need to be highlighted or explained in the ac- Last, there is no accompanying narrative for the final category, "Third companying text. Party Applicability," which strives to determine the applicability of these socio-economic principles to other parties, such as suppliers, con- Specifically, there is no accompanying narrative for the first two and sultants, and licensees. Some of this material is similar to that covered last two categories in these matrices. The first category in the socio- in Section 2.3.9 regarding "Suppliers" in the environmental matrices. economic matrices is titled "Public Participation/Community Rela- tions." The information in this category is an overview of general 3.4.1 Indigenous People community-related policies, similar to the "Broad Policy Statements" During the past few years, members of the extractive industry grap- that begin the human rights and environmental matrices. There is no pled with policies addressing the rights of the indigenous peoples liv- adequate comparison or real "international standard" by which to ing in the communities in which mineral reserves are found. compare these statements. Accordingly, there is no summary of that category in this narrative. In general, companies state their concern for A number of international conventions and legal documents pertain to the effect of their operations on the surrounding community and the treatment of indigenous peoples. The preeminent international agree- pledge to consult with stakeholders and local governments when con- ment regarding the rights of indigenous peoples is ILO Convention 169, ducting operations. concerning Indigenous and Tribal Peoples in Independent Countries. T H E M I N I N G S E C T O R 51 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 52 This Convention is applicable to tribal peoples in independent countries that . . . consultation with local people, public authorities, and other in- whose "social, cultural and economic conditions distinguish them from terested parties may result in authorization not being given to explore other sections of the national community" and peoples in independent or to mine, or that operations themselves will decide not to proceed in countries who are "regarded as indigenous on account of their descent." any given case." In circumstances where indigenous populations have long-standing claims to land, Rio Tinto recognizes that "it is appropri- A Draft Declaration on the Rights of Indigenous Peoples, which re- ate, and indeed frequently required under statute," that it "negotiates a flects the input of indigenous peoples as well as national governments, mining access agreement directly with the indigenous landowners." is currently under consideration by the United Nations. Placer Dome commits to consulting "with local communities regard- In addition, some lending institutions, including the World Bank, ing programs proposed on mineral claims covering lands of mutual in- maintain their own guidelines regarding the treatment of indigenous terest" and to working with local communities on ways in which to peoples with respect to projects that receive their funding. World Bank protect "spiritual sites, traditional pursuits and the environment dur- Operational Directive (O.D.) 4.20 on Indigenous Peoples (September ing exploration, mining and reclamation activities." It also expresses 1991) requires that indigenous people benefit from development pro- its willingness to "support social development in these communities." jects and that companies avoid or mitigate potentially adverse effects on them. Detailed requirements are also set out in the World Bank's Many companies have general statements of respect for indigenous pop- Indigenous People Development Plan. ulations and traditional cultures, but do not provide more specific poli- These documents accord indigenous peoples distinctive rights based cies on how to manage their operations to best protect the rights and upon factors that include their "self-definition," institutions, language, needs of these populations. For example, Alcoa states that "we respect vulnerability, attachment to specific land, and subsistence lifestyle. the cultures, customs and values of the people in communities where we The principles governing international law regarding the rights of in- operate" and "take into account their needs, concerns and aspirations," digenous peoples focus upon the collective rights of these individuals, but the company provides no details on how those commitments are im- and stress the importance of identifying indigenous lands, cultural plemented. Similarly, BHP Billiton's policy provides that it "respect[s] rights, and their right to exist as distinct peoples. the traditional rights of indigenous people and aim[s] to work coopera- tively with them to ensure that [its] presence provides lasting benefits As with the oil and gas sector, there is no real emerging standard within and causes as little disruption as possible to their communities." the mining sector regarding indigenous rights other than a recognition that issues involving indigenous peoples should be addressed by companies. Phelps Dodge, Newmont, CEMEX, Philex, and Union Cement have no specific policies regarding indigenous peoples or their rights. Rio Tinto and Placer Dome advocate among the most specific and comprehensive guidelines on indigenous rights. Rio Tinto has endorsed Most of the non-corporate entities provide policies in this area, and the principles of several international treaties regarding indigenous have at least general statements expressing respect for the rights of in- rights, including ILO Convention 169, Article 17.2 of the UDHR, and digenous populations. Notably, ICMM provides that companies Article 27 of the International Covenant on Civil and Political Rights should "respect the culture and heritage of local communities, includ- (ICCPR). With regard to land claims based on ancestral and indigenous ing indigenous peoples," and "ensure that appropriate systems are in title, the company states that it seeks to obtain a full understanding of place for ongoing interaction with affected parties, making sure that the relevant issues and the ways in which rights claimed by local com- minorities and other marginalized groups have equitable and cultur- munities are accommodated. In the process, Rio Tinto "fully accepts ally appropriate means of engagement." 52 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 53 3.4.2 Land Rights, Resettlement, and Displacement Alcan states that prior to resettling communities, it "obtains commu- Policies regarding land rights and the potential for resettlement and nity consent through formal stakeholder consultations" and that displacement go hand in hand with policies regarding indigenous rights. "[t]erms for resettlement are negotiated with the concerned groups." Accordingly, the international standards on these issues overlap in Alcoa's policy provides "[r]esettlement should ensure that landown- large part with the standards governing indigenous rights, including ers are adequately compensated in kind and financially." those set forth in ILO Convention 169. Anglo American recognizes that "the wishes of the community are The main international standard on the issue of land rights and reset- crucial" and that it is also important to consider "issues like the avail- tlement is the World Bank's O.D. 4.30 on Involuntary Resettlement ability of land and ensuring that community ties and traditional in- (June 1990), which applies to both physical and economic displace- come sources are not disrupted." Anglo American notes that, if ment. It seeks to ensure that "the population displaced by a project re- resettlement is necessary, it should be done "in accordance with na- ceives benefits from it," and states that involuntary resettlement "is an tional legal processes and with regard to international best practice." integral part of project design" and "should be dealt with from the ear- BHP Billiton commits to implementing the World Bank guidelines on liest stages of project preparation." Involuntary Resettlement. In particular, O.D. 4.30 states that any such project preparation should Barrick Gold, Newmont, Noranda, Norsk Hydro, Phelps Dodge, take into account certain basic principles, including that: (1) "invol- Placer Dome, Teck Cominco, WMC Resources, CEMEX, Lepanto, untary settlement should be avoided or minimized where feasible;" (2) Philex, and Silangan Mindanao Exploration Company do not provide where involuntary settlement is unavoidable, resettlement plans policies regarding resettlement and displacement. should be developed and resettled individuals should be "provided sufficient investment resources and opportunities to share in project Few of the non-corporate entities provide policies with regard to re- benefits;" (3) displaced persons should be "compensated for their settlement and most do not give specific recommendations on this losses at full replacement cost prior to the actual move, assisted with issue. ICMM states that companies should "minimise involuntary re- the move, supported during the transition period in the resettlement settlement, and compensate fairly for adverse effects on the commu- site, and assisted in their efforts to improve their former living stan- nity where they cannot be avoided." The Principles for the Conduct of dards, income earning capacity, and production levels, or at least to restore Company Operations within the Minerals Industry, produced by the them;" (4) community participation in planning and implementing Mineral Policy Institute, state that "[c]ompanies should not forcibly resettlement should be encouraged; and (5) "resettlers should be inte- remove or be a party to others who want to remove indigenous people grated socially and economically into host communities." from their land or territories" and that "[n]o relocation shall take place without free and informed consent of the indigenous peoples con- There is a slowly emerging trend among companies to address the cerned and after agreement on just and fair compensation." The Prin- issue of forced resettlement, and to compensate, or even improve the ciples also recommend that companies should ensure that "if the incomes of, resettled populations. Instead of adopting policies on the development of a mine means that people have to be moved off the issue of land rights and resettlement, however, many companies simply mining site, then the resettlement and rehabilitation of those people state their general support for universal human rights, implicit in which should be agreed to by the people of the affected community" and that may be guarantees of land and resettlement rights. This is more likely "no affected person, group or community has their standard of living, to occur with mining companies than with oil and gas companies. economic, culture and social cohesion diminished as a result." T H E M I N I N G S E C T O R 53 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 54 3.4.3 Local Economic Development to develop and implement a Local Community/Indigenous People plan Virtually every company surveyed displayed a commitment to contribute incorporating employment, training and business opportunities." to the communities in which they operate, and to positively impact the Most of the non-corporate entities analyzed provide general policies with local economies in which their projects are situated. The nature and ex- regard to local community development, which typically emphasize the tent of such contributions, however, spanned a broad spectrum. At a min- need for companies to provide sustainable contributions to the social and imum, companies state that they donate to local humanitarian efforts. economic development of the communities in which they operate. For Some direct their community support at sustainable development efforts, instance, ICMM provides that companies should "contribute to the so- and others help to build local capacity by emphasizing such specific ini- cial, economic and institutional development of the communities in tiatives as training and hiring employees from the local workforce. which we operate." There is no good international barometer by which to compare these initiatives. Even the UN Norms do not specifically address the issue 3.4.4 Bribery and Corruption/Facilitation Payments of local economic development. The Norms do, however, address the As noted in Section 2.4.4 regarding the oil and gas sector, bribery and issue generally, stating that transnational corporations and other busi- corruption issues are frequently endemic in the developing nations in ness enterprises shall respect rights of communities to "own, occupy, which many mining companies operate. These issues also signifi- develop, control, protect, and use their lands." There are also a cantly impact companies' bottom lines, so it is not surprising that the plethora of UN principles regarding development cooperation. trend within the mining sector is to develop strong policies opposing bribery and other forms of corruption. The specificity and compre- Many companies describe their efforts to participate in local commu- hensiveness of such policies differ, but there is virtual unanimity re- nity development activities through charitable giving, community- garding their importance. based initiatives, and employing members of the local populations. A number of international agreements and standards address bribery In particular, a number of companies maintain specific philanthropic and corruption issues and can be used as a benchmarks. These include plans to promote local development, frequently by donating a per- the recently passed UN Convention Against Corruption, the OECD centage of revenues to community projects. These companies include Convention on Combating Bribery, and the UN Norms. Although Barrick Gold's policy to donate 1% of annual pretax income to com- these international agreements go further than most companies' poli- munity causes, and Freeport-McMoRan's policy, since 1996, to also cies, and none of the companies have yet to specifically endorse these contribute at least 1% of annual gross revenues to local village-based agreements, the emerging trend is to prohibit all forms of bribery and development--which has resulted in the company donating over $92 corruption. million through the year 2000. Freeport intends to continue this ini- tiative until 2006. BHP Billiton has also stated its intention of spend- In addition to international agreements, an important multi-party ini- ing 1% of pre-tax profits, including for support on community tiative regarding corruption is the "Publish What You Pay" campaign, development programs. The company notes that its development pri- which was launched in June 2002 by Transparency International, the orities include "capacity-building and skill transfer for employees and Open Society Institute, Global Witness, and a number of other NGOs. communities," and it works with stakeholders "to ensure resources are This is described in more detail in Section 2.4.4, along with the Ex- directed toward sustainable benefits." tractive Industries Transparency Initiative (EITI). WMC Resources has a particularly notable initiative in which it requires Additionally, TI and SAI recently published Business Principles for businesses tendering for company contracts to "declare their intention Countering Bribery. These guidelines, developed in consultation with 54 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 55 private companies, NGOs and trade unions, are meant to provide com- Rio Tinto states unequivocally that "[t]he only way to guarantee com- panies with practical guidance regarding how to implement interna- pliance with UK laws on bribery is to avoid making facilitation pay- tional standards on bribery and corruption. The Principles aim to ments anywhere in the world." Many companies, including Alcoa and "[p]rovide a framework for good business practices and risk manage- WMC Resources, allow facilitation payments if they do not violate ment strategies for countering bribery," and ask that companies "pro- local law, are made in order to ensure routine government action, and hibit bribery in any form whether direct or indirect" and "commit to are properly recorded. Several company policies frequently require implementation of a Programme to counter bribery." Among the im- employees to check with corporate counsel before making any facili- plementation mechanisms they suggest are for enterprises to "prohibit tation payments. the offer, gift, or acceptance of a bribe in any form, including kickbacks, Among the non-corporate entities, most provide general policy state- on any portion of a contract payment, or the use of other routes or chan- ments regarding the need to conduct business with the highest ethical nels to provide improper benefits to customers, agents, contractors, sup- standards. ICMM has a particularly comprehensive policy, and stipu- pliers or employees of any such party or government officials." lates that companies should "implement and maintain ethical business Publish What You Pay highlights the work of Anglo American, New- practices and sound systems of corporate governance," "develop and mont, and Rio Tinto for attending the EITI High-Level Multi-Stake- implement company statements of ethical business principles," "im- holder Conference and endorsing the EITI "openly and publicly." plement policies and practices that seek to prevent bribery and cor- BHP-Billiton is also a participant in EITI. ruption," "comply with or exceed the requirements of host country laws and regulations," and "implement and maintain ethical business Anglo American's policy is "implacably opposed to corruption" and practices and sound systems of corporate governance." the company will "not offer, pay or accept bribes or condone anti- competitive practices in [its] dealings in the marketplace and will not tolerate any such activity by [its] employees." Rio Tinto states that 3.4.5 Political Contributions "[b]ribery, in all of its forms, is prohibited. We neither promise, offer Tied to the issues of bribery and corruption is the issue of political con- nor accept bribes or anything which could be taken for one, either di- tributions made by a company or its employees, either in the com- rectly or indirectly." pany's country of incorporation or in the nations in which it operates. The trend is that contributions are only allowed to the extent permit- With regard to facilitation payments, companies offer a range of poli- ted under applicable law, and many companies increasingly ban po- cies. As defined in the Commentaries to the OECD Convention on litical contributions altogether. Combating Bribery, facilitation payments are sums "made to induce public officials to perform their functions, such as issuing licenses or There is no clear international standard regarding political contribu- permits." These payments are illegal in many countries, which treat tions, although the UN Norms, in a general statement regarding trans- them explicitly as bribes, while other countries, including the United parency, provides that transnational corporations and other business States, allow them if they are not excessive in order to facilitate rou- enterprises "shall recognize and respect applicable norms of interna- tine government action. tional law; national laws; regulations; administrative practices; the rule of law; the public interest; development objectives; social, eco- TI and SAI's Business Principles for Countering Bribery urges that nomic, and cultural policies including transparency, accountability, since "facilitation payments are a form of bribery, the enterprise and prohibition of corruption; and authority of the countries in which should work to identify and eliminate them." the enterprises operate." T H E M I N I N G S E C T O R 55 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 56 The OECD Guidelines stipulate that enterprises should "not make ille- made outside of the United States, where local law permits, and with gal contributions to candidates for public office or to political parties or the permission of the CEO and General Counsel. to other political organizations," and that any "contributions should A number of companies emphasize that employees should feel free to par- fully comply with public disclosure requirements and should be re- ticipate in political activities and make contributions as long as their ac- ported to senior management." tions are clearly seen as their own and they are not viewed as representing TI and SAI's Business Principles for Countering Bribery suggest that their employers. Phelps Dodge states that though it does not make contri- enterprises and their "employees or agents should not make direct or butions to candidates or political parties as a company, it encourages its indirect contributions to political parties, organisations or individuals employees to "be actively involved in the civic affairs of the communities engaged in politics, as a way of obtaining advantage in business trans- in which they live" as long as their activities are not attributable to the actions" and should "publicly disclose all [their] political contributions." company. Placer Dome also encourages its employees to be active in civic affairs, provided that they do not act as representatives of the company. Some mining companies unequivocally ban political contributions. BHP Billiton states that it will not contribute funds to any party, politi- None of the non-corporate entities offer policies with regard to polit- cian, or candidate in any country and Rio Tinto provides that it "does ical contributions, although many of them provide general policy not directly or indirectly participate in party politics nor make pay- statements regarding ethical business conduct. ments to political parties or individual politicians." 3.4.6 Financial Transparency Other companies allow contributions to be made in certain cases, or The issue of financial transparency overlaps with issues of bribery and permit certain types of contributions. Virtually always, political con- corruption in Section 3.4.4--particularly with respect to the Publish tributions are allowed only with the approval of senior management. What You Pay campaign and the EITI. Please refer to that section and Placer Dome states that it may "from time-to-time, make contributions Section 2.4.4 in the oil and gas analysis for further information on to candidates, their campaigns or political parties where permitted by these voluntary initiatives. law, but only with the approval of the [company's] Donations Com- mittee...or in the case of the regional business units, the CEO of the Virtually all companies commit publicly to financial transparency, al- subsidiary company." WMC Resources "donates to political parties, though the levels of these commitments vary widely. The most pro- [with] regard to policies that may impact on its shareholders," though gressive companies document and memorialize business decisions any commitment must be reviewed first by the Board of Directors. and agreements, require accurate accounting verified by external au- Freeport-McMoRan's policy prohibits contributing funds to any can- ditors, and do not allow any off-balance sheet accounting. didate or official of a political party in any country, though contribu- Although there is little consensus regarding an international standard tions to political parties may be made if first approved by senior for financial transparency, the EITI sets a particularly high bar and management. the UN Norms require that companies recognize and respect "applic- Alcan's general policy is to disallow contributions to political parties able norms of international law, national laws, regulations, adminis- although, in exceptional cases and where local law permits, such con- trative practices . . . and social, economic, and cultural policies tributions may be made with the approval of the company's CEO. including transparency, accountability, and prohibition of corrup- Alcoa does not allow any contributions to candidates, parties, or cam- tion." The OECD Guidelines provide that enterprises should "ensure paigns within the United States, but does allow such payments to be that timely, regular, reliable and relevant information is disclosed 56 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 57 regarding their activities, structure, financial situation, and perfor- 3.4.7 Competition and Pricing mance," and that they "apply high quality standards for disclosure, Like financial transparency, the issue of competition and pricing over- accounting, and audits." laps with the issues of bribery and corruption presented in section 3.4.4--particularly with respect to the Publish as You Pay campaign TI and SAI's Business Principles for Countering Bribery suggest that and the EITI. Please refer to that section and Section 2.4.4 in the oil enterprises "maintain accurate books and records, available for in- and gas analysis for further information on these voluntary initiatives. spection, which properly and fairly document all financial transac- tions," "maintain off-the-books accounts," and encourage employees There is not a clear international standard by which to benchmark the and others to "raise concerns and violations as early as possible." To policies of companies, although the Commentary to the UN Norms that end, the Principles suggest that enterprises "should provide secure comes close. It states that "transnational corporations or other busi- and accessible channels through which employees and others should ness enterprises shall encourage the development and maintenance of feel able to raise concerns and report violations (`whistle-blowing') in fair, transparent, and open competition by not entering into arrange- confidence and without risk of reprisal." ments with competing businesses to either directly or indirectly fix prices, divide territories, or create monopoly positions." As noted in the section on bribery and corruption, Anglo American, BHP Billiton, Newmont, and Rio Tinto are participants in EITI. Rio Tinto's Similarly, the OECD Guidelines provide that MNEs should, within policy notes that its "commitment, both in principle and practice, is to the framework of applicable laws and regulations, "conduct their ac- maximum transparency consistent with good governance and commercial tivities in a competitive manner and refrain from entering into or car- confidentiality." Similarly, Placer Dome is committed "to the maximum rying out anti-competitive agreements among competitors to fix level of transparency consistent with normal commercial confidentiality" prices; make rigged bids (collusive tenders); establish output restric- where transparency is defined as "openness to public scrutiny." tions or quotas; or share or divide markets by allocating customers, suppliers, territories, or lines of commerce." Some companies did not place an emphasis on external transparency, but focused on internal efforts to ensure that all corporate transactions Most mining companies maintain general policies addressing compe- are properly recorded and reported within the company. Freeport- tition and pricing, although many are limited to statements that the McMoRan states that its Chief Executive Officer and those officers company will fully comply with relevant antitrust, corporate, and anti- "performing accounting, financial management of similar functions" boycott laws. must provide "colleagues with information that is accurate, complete, Alcan's policy is one of the more extensive in this category, and of- objective, relevant, timely and understandable" as well as " full, ac- fers specific examples of the types of agreements that employees curate, timely, and understandable disclosure for reports and docu- should avoid. It mandates that employees should "never enter into ments filed with, or submitted to, the Securities and Exchange agreements [with] competitors on issues such as price, costs, rate, type Commission and other public communications." or amount of production" and must "refrain from use of market power or information to restrict competition, [or] avoid any unfair or decep- Few of the multi-stakeholder or non-corporate entities provide policies on tive act or practice." this issue. The Mining Association of Canada states that it works to "[con- duct] all facets of our business with excellence, transparency, and ac- Norsk Hydro complies with the European Union (EU) Competition countability." Euromines states that "[m]embers shall conduct their affairs Compliance Program in an effort to "avoid situations in which Hydro in a properly accountable manner with respect to all financial matters." may be in breach of the competition rules, and to avoid unnecessary T H E M I N I N G S E C T O R 57 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 58 suspicion among competition authorities." The company developed a Many of the mining company policies echo the World Bank's em- compliance manual, appointed competition compliance officers, and phasis on the need for effectively planning for mine closures even be- conducts courses and seminars on competition and pricing. fore the initial mining operation begins. Newmont states that "[c]onsideration of closure and reclamation must occur during the de- Few of the non-corporate entities provide policies regarding competi- sign of a project and must be included as an integral component during tion and pricing. The Australian Parliament's proposed Code states the life of the operation." Barrick Gold notes that "[m]ine closure is that an "overseas corporation must not...enter into or carry out or give recognized to be an important aspect of the life cycle of every mine. For effect to any anti-competitive agreement with another person." ICMM this reason, mine closure is included in project planning and budget- provides that companies should "support public policies and practices ing." Placer Dome provides that "[c]onsideration of closure require- that foster open and competitive markets" as well as "implement good ments now begins during exploration and is dominant throughout the practice and innovate to improve social, environmental and economic mine cycle." performance while enhancing shareholder value." Companies also note that proper planning throughout a mine's opera- 3.4.8 Mine Closure tional phase can significantly reduce mine closure costs. Rio Tinto Proper planning for mine closure is a critical issue for mining compa- states that "[h]igh standards of environmental management during nies. Mine sites must be properly shut down and managed to prevent mine life reduce closure costs and hasten rehabilitation." lasting environmental, social, and economic harm to the surrounding A number of company policies specify the range of issues that must region. As WMC Resources notes, "[t]he state in which we close our be considered in mine rehabilitation. Of particular note, Barrick operations is often the only way in which others will remember how Gold's mine closure plans include "planning for workforce reduction, responsible we are." community effects, demolition, final reclamation, post-mining land The guidelines in the World Bank/IFC Handbook regarding both Base use, and monitoring." Its site restoration efforts include "contouring Metal and Iron Ore Mining, and Coal Mining and Production, provide the land, replacing topsoil, and seeding to re-establish the native flora, that before mining operations even begin "a mine closure and reclama- stable landforms, and post-mining land use"--all recommended by tion plan must be prepared." Such plans should address "reclamation of the Handbook. Barrick Gold also conducts ongoing water monitoring tailings deposits, waste rock deposits, any open pit areas, sedimentation and treatment, if necessary, to manage the impacts of the mine site on basins, and abandoned mine, mill, and camp sites." The Handbook lays water supplies and systems. out a number of objectives and guidelines for mine closure, including: The mine closure plans of WMC Resources include efforts to conduct (1) returning "the land to conditions capable of supporting prior land use, "trials and research to ensure successful rehabilitation; [m]inimise the en- equivalent uses, or other acceptable uses;" (2) eliminating "significant vironmental impacts of overburden and waste rock; [e]stablish a stable adverse effects on adjacent water resources;" (3) using "waste water for post-operating landscape that is compatible with surrounding landforms; backfill and topsoil (or other acceptable materials) for reclamation to the [and d]o progressive rehabilitation to ensure minimum requirements at extent feasible;" (4) contouring slopes "to minimize erosion and runoff;" closure." (5) planting "native species of vegetation and of other species that are en- vironmentally acceptable, to prevent erosion and to encourage self-sus- A number of the non-corporate entities also provide comprehensive taining development of a productive ecosystem on the reclaimed land;" policy statements and recommendations regarding mine closure. and (6) sealing and securing "all shaft openings and mine." ICMM states that companies should "[d]esign and plan all operations 58 C O M P A N Y C O D E S O F C O N D U C T A N D I N T E R N A T I O N A L S T A N D A R D S : A N A N A L Y T I C A L C O M P A R I S O N CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 59 so that adequate resources are available to meet the closure require- This category was included in this code of conduct review to determine ments of all operations" as well as "[r]ehabilitate land disturbed or oc- if there were any emerging trends regarding how large, and frequently cupied by operations in accordance with appropriate post-mining land progressive, mining companies were grappling with issues of small- uses." The Minerals Council of Australia encourages companies to scale mining. However, none of the mining companies reviewed had recognize that "effective stakeholder involvement" is necessary to policies with regard to artisinal and small-scale mining. successfully manage the closure of a mine. The Council also recom- Of the non-corporate entities, only the Principles for the Conduct of mends that companies "contribute to focused and relevant research Company Operations within the Minerals Industry, produced by the into strategic issues of significance to mine closure." Mineral Policy Institute, provide a policy on this issue. The Principles state that company workshops on codes of conduct and training should 3.4.9 Artisinal and Small-Scale Mining "include small-scale miners associated with the company" and that Artisinal and small-scale mining activities are endeavors by individu- "[c]ompanies should recognise the legitimate role and rights of small- als, groups, families, or cooperatives, with minimal or no mechaniza- scale miners and not seek to obtain mineral leases that involve their tion, often in the informal (or illegal) sector of the market. It is an dispossession." They continue, "Where appropriate, companies important component of the overall mining sector, because millions of should negotiate agreements with small-scale miners for compensa- people around the world are estimated to work in small mines, pri- tion, where such miners are prepared to relinquish their land. Where marily in developing countries, and many of these miners are women the activities of large companies adversely affect small-scale miners, and children. Artisinal and small-scale mining is known for its high appropriate compensation should be paid." environmental costs, and its poor health and safety record. T H E M I N I N G S E C T O R 59 CRS_Oil-Gas_Ch03 3/3/04 12:20 Page 60 CRS_Annex A 3/3/04 12:12 Page 61 Company Codes of Conduct Oil and Gas Sector A N N E XA Labor and Human Rights Standards . . . . . . . . . . . . . . . . . . . . . . . . 63 Oil and Gas Sector A N N E XB Environmental Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Oil and Gas Sector A N N E XC Socio-Economic Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Mining Sector A N N E XD Labor and Human Rights Standards . . . . . . . . . . . . . . . . . . . . . . . 225 Mining Sector A N N E XE Environmental Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Mining Sector A N N E XF Socio-Economic Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 CRS_Annex A 3/3/04 12:12 Page 62 CRS_Annex A 3/3/04 12:12 Page 63 A A N N E X Oil and Gas Sector Labor and Human Rights Standards Companies/Organizations: Issues Examined: Amnesty International, Human Rights Principles for Companies General Policy and Strategy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64-69 Australian Institute of Petroleum (AIP) Forced Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70-75 BP p.l.c. Caux Roundtable (The), Principles for Business Child Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70-75 ChevronTexaco Corporation Wages, Benefits, and Terms of Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76-81 Eni S.p.A. Exxon Mobil Corporation Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76-81 Galp Energia, SGPS, S.A. Non-Discrimination and Diversity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82-87 International Chamber of Commerce (ICC) Marathon Oil Corporation Harassment, Abuse, and Disciplinary Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82-87 Mineral Policy Institute, Principles for the Conduct of Company Operations Freedom of Association and Collective Bargaining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88-93 within the Minerals Industry Norsk Hydro ASA Labor/Management Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88-93 Occidental Petroleum Corporation Training and Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94-99 Odebrecht S.A. Organisation for Economic Co-operation and Development (OECD), Guidelines Security Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94-99 for Multinational Enterprises Monitoring and Compliance Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100-105 Regional Association of Oil and Natural Gas Companies in Latin America and the Caribbean (ARPEL) Shell International Limited Social Accountability International, SA8000 South African Petroleum Industry Association (SAPIA) Statoil ASA TOTAL S.A. International Standards 63 CRS_Annex A 3/3/04 12:12 Page 64 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv General Policy and "All companies should adopt an "Supports the belief that human rights are universal. "As responsible citizens Strategy Statement explicit company policy on human They are enshrined in the United Nations (UN) of the local, national, rights which includes support for UDHR, which we support." regional, and global com- the Universal Declaration of "Will ensure that we adhere to the principles of munities in which they Human Rights (UDHR)." human rights within its operations and in those operate, businesses "All companies should ensure areas that are under its control." share a part in shaping that their policies and practices "Endeavours to support human rights may require the future of those com- provide for safe and healthy work- discussions with business partners and trade asso- munities." ingconditions." ciations and with the authorities at local, provincial Companies should and national levels. These must be handled in a con- "respect human rights and structive and sensitive manner, consulting with democratic institutions, independent experts and responsible Non- then promote them wher- Governmental Organisations (NGOs) or other inter- ever possible." national organisations where appropriate (e.g. "Contribute to such forces Amnesty International, Human Rights Watch, World of reform and human Bank and UN)." rights as are at work in the "Committed to showing respect for human dignity communities in which we and the rights of the individual wherever we do operate." business." Companies should "pro- "Supports the principles set forth in the UN UDHR vide working conditions and will respect the 2000 International Labour that respect each Organisation (ILO) Tripartite Declaration of employee's health and Principles concerning Multinational Enterprises and dignity...[and] protect Social Policy and the 2000 Organisation for employees from avoid- Economic Co-operation and Development (OECD) able injury and illness in Guidelines for Multinational Enterprises." the workplace." "Respect their rights, culture and dignity. We will act fairly and justly." 64 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 65 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix One of the first official signatories of the "In conducting its activities as an "Pledges to be a good corporate citizen in new Global Sullivan Principles, which international company, Eni refers to all the places" in which it operates. promote business support for human the protection of human and labor "Will maintain the highest ethical stan- rights, economic justice, racial and gen- rights, of safety and the environment, dards, obey all applicable laws and regu- der equality, sustainable development as well as to the system of values lations, and respect local and national and a healthy environment. and principles concerning trans- cultures." In accordance with the Sullivan parency and integrity, energy effi- "Standards of Business Conduct sets the Principles, expresses "support for uni- ciency and sustainable development, tone for the conduct of our business in versal human rights and, particularly, as outlined by international institu- each Exxon Mobil location around the those of our employees, the communi- tions and conventions." world. We believe that [they] are consis- ties within which we operate, and par- "Aware that only through mutual tent with the spirit and intent of the princi- ties with whom we do business." understanding it is possible to pursue ples set forth in the UDHR, to the extent a common path towards development that the provisions of this Declaration and growth which is also respectful of adopted by governments are relevant to the rights of communities and of their private entities." social, cultural and environmental identities." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 65 CRS_Annex A 3/3/04 12:12 Page 66 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii General Policy and "Nine Practical Steps to Responsible "Strives to be a good neighbor by providing sustain- "Companies must observe not only the laws Strategy Statement Business Conduct: able benefits to local communities, and by incorpo- applicable in the countries in which they oper- (Continued) confirm CEO/Board commitment to give pri- rating economic, environmental, and social codes ate but also International Human Rights law, ority to responsible business conduct; of conduct into our business strategy." which includes requirements which must be state company purpose and agree on com- met not only by states but by other entities, pany values; regardless of whether such laws have been identify key stakeholders; ratified by the states within which companies define business principles and policies; operate." establish implementation procedures and management systems; benchmark against selected external codes and standards; set up internal monitoring; use language everyone can understand; set pragmatic and realistic objectives." 66 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 67 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Committed to playing a constructive "Committed to continually reduce the "Believes the reduction of social Multinational Enterprises are and positive part in all the communities potential impact of our business oper- inequalities helps drive the development "encouraged to respect human in which we are present. " ations on the environment and to of all sectors in all countries. Voluntarily rights, not only in their dealings with "Cooperation and dialogue NGOs and safeguard the health and safety of our supports important projects that help employers, but also with respect to stakeholders, both locally and globally workers and neighboring communities." expand opportunities to get access to others affected by their activities, in a to develop mutual understanding." "Health, Environment and Safety jobs, education and cultural heritage in manner consistent with host govern- In qualifying for the FTSE4Good Index, Management System addresses the communities and countries in which ments' international obligations and met the criteria upholding and support- risks, maintains and monitors regula- we operate." commitments." ing universal human rights. tory compliance and provides a con- "In 2002, set social and environmental sistent worldwide standard of care responsibility standards for its ventures for people and the environment." and approved the following policies and guidelines." "AIDS Prevention Policy." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 67 CRS_Annex A 3/3/04 12:12 Page 68 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix General Policy and "Social responsibility, knowledge and coopera- "Respect the human rights of their employees." Strategy Statement tion are values promoted by ARPEL." "Provide their employees with good and safe con- (Continued) "Cannot achieve growth and prosperity if we ditions to work, and good and competitive terms don't contribute to the improvement of society." and conditions of services." "Performing in a socially responsible way, that "Promote the development and best use of human is, taking into consideration environmental, talent and equal opportunity employees in the social and economic aspects, has always been planning and direction of their work, and in the among ARPEL's priorities." application of these principles within their com- "Permanently interacting with regional and pany." international organizations on issues that are "Conduct business as responsible corporate being developed within its Committees and members of society, to observe the laws of the Working Groups." Those organizations include: countries in which they operate, to express sup- The World Bank, IPIECA, Canadian port for fundamental human rights in line with the International Development Agency, legitimate role of business and to give proper International Maritime Organization, Clean Air regard to health, safety and the environment con- Initiative, and the International Energy Agency. sistent with their commitment to contribute to sustainable development." "Takes a constructive interest in societal matters which may not be directly related to the busi- ness." 68 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 69 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards Association formed "'We will observe and promote "Respects the natural envi- "to promote under- fundamental standards for human ronment and the cultural val- standing of the rights, labour rights and the envi- ues of all the countries in industry's contribu- ronment." which it is present." tion to economic and "In order to secure our license to "The Ethics Committee, social progress with operate, we should be prepared to which reports to the Chief all stakeholders." counter the erroneous impression Executive Officer, is in created by some anti-globalisation charge of all questions of activists that we--by expanding ethics concerning the our operations in the developing Group's activities." world--are participating in a race to the bottom over labour and social standards." "Believes that, by running its busi- ness as profitably and efficiently as possible, it can help give peo- ple in host communities a better life." "Committed to observing and pro- moting fundamental standards for human rights. The potential impact of our operations and projects on human rights is assessed where this is considered relevant." "Seeking to help build local capacity in the fields of education, human rights and governance ... [through] work with and through local authorities and NGOs." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 69 CRS_Annex A 3/3/04 12:12 Page 70 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Forced Labor "All companies should ensure "Will not employ forced labour." Provide working condi- that their policies and practices Obtains specific assurance that its businesses do tions that respect each prohibit the use of chattel slaves, not employ forced labor through its ethics certifica- employee's health and forced labour, or coerced prison tion process. dignity. labour." "This should include ensuring that suppliers, partners, or contractors do not use such labour." Child Labor "All companies should ensure "Will not use child labour in its operations or in the Provide working condi- that their policies and practices provision of its goods or services and will seek to tions that respect each prohibit the use of bonded child facilitate the transition to alternatives to child employee's health and laborers." employment, such as apprenticeships, training and dignity. "This should include ensuring further education." Collaborate with those that suppliers, partners, or con- "Wishes to make a constructive contribution to the forces in the community tractors do not use such labour." reduction and elimination of child labour. " dedicated to raising stan- Obtains specific assurance that its businesses do dards of health, educa- not employ child labor through its ethics certification tion, workplace safety process. and economic well-being. "Major strategic contracts contain a contractual arrangement regarding compliance with BP's busi- ness policies, including ethical conduct." 70 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 71 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix In accordance with the Sullivan "Forced labor is prohibited; whether "Condemns the violation of human rights Principles, operates without unac- it be slavery or work performed by in any form." ceptable worker treatment such as inmates." Makes it clear to all "employees and con- physical abuse and involuntary servi- Commits to operate within the frame- tractors--as well as police and military tude, or other forms of abuse. work of the UN UDHR, the forces that provide security to our opera- Fundamental Conventions of the ILO tions--that human rights violations will not and the OECD Guidelines on be tolerated." Multinational Enterprises, with partic- ular reference to the areas concern- ing the rejection of forced labor. In accordance with the Sullivan "Child labor is prohibited, especially "Condemns human rights abuses." Principles, operates without unac- in its most strenuous forms, and the Makes it clear to all "employees and con- ceptable worker treatment such as right of children to complete their tractors--as well as police and military the exploitation of children. development and education must be forces that provide security to our opera- safeguarded." tions--that human rights violations will not Commits to operate within the frame- be tolerated." work of the UN UDHR, the Fundamental Conventions of the ILO and the OECD Guidelines on Multinational Enterprises, with partic- ular reference to the areas concern- ing the rejection of child labor. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 71 CRS_Annex A 3/3/04 12:12 Page 72 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Forced Labor Companies should ban "the purchase of (Continued) goods made with forced labour or prison labour." "Companies must recognise that forced labour is unacceptable." Child Labor Companies should ban "the purchase of (Continued) goods made with child labour." Companies must recognize "the right of the child to be protected from economic exploita- tion from performing any work that is likely to be hazardous or interfere with the child's education, or be harmful to the child's health or physical, mental, spiritual, moral or social development." Companies must "respect the minimum age for admission to employment.'" 72 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 73 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi Does not accept forced labor. Operates without unacceptable Enterprises should "contribute to the worker treatment such as physical elimination of all forms of forced or punishment and involuntary servitude compulsory labour." or other forms of abuse. "Does not allow child labor and does Operates without unacceptable Enterprises should "contribute to the not engage children under 16 in our worker treatment such as exploitation effective abolition of child labour." operations. If the child is secured the of children. right for education, play, rest and fam- ily life, limited exceptions may be made if this is clearly in the best inter- ests of the child. This is in line with Save the Children Fund's policy." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 73 CRS_Annex A 3/3/04 12:12 Page 74 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Forced Labor "The company shall not engage in or support (Continued) the use of forced labour, nor shall personnel be required to lodge `deposits' or identity papers upon commencing employment with the company." Child Labor "Published management primers on human rights "The company shall not engage in or support (Continued) and preventing child labour as part of a wider the use of child labour." programme of awareness training and manage- ment procedures." "Made a positive impact on defeating child labour in Brazil." 74 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 75 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "Committed to a set of core Adheres to: the principles International Covenant on Civil and Political Rights. labour standards which we of UDHR 1948 and the UN ILO Forced Labor Convention, No. 29, and ILO Abolition of Forced Labor believe should be universally Global Compact principles Convention, No. 105. applied, regardless of a coun- labor standards. UN Global Compact ("eliminate all forms of compulsory labor"). try's level of development UN Norms (transnational corporations and other business enterprises "shall not use including freedom from forced forced or compulsory labor as forbidden by the relevant international instruments and labour." national legislation as well as international human rights and humanitarian law"). Commentary to UN Norms: Workers shall be recruited, paid, and provided with working conditions, including wages that will allow them to enjoy just and favor- able conditions of work so as to avoid debt bondage and other contemporary forms of slavery. Commentary to UN Norms: Workers shall have the option to leave employment and the employer shall facilitate such departure by providing all the necessary documentation and assistance. International Finance Corporation (IFC) will not support projects that use Forced or Harmful Child Labor. `Forced Labor' consists of all work or service, not voluntarily performed, that is exacted from an individual under threat of force or penalty. "Committed to a set of core Adheres to : the principles International Covenant on Civil and Political Rights. labour standards which we of the ILO, in particular, to ILO Minimum Age Convention, No. 138, and Worst Forms of Child Labor believe should be universally those concerning the use Convention, No. 182. applied, regardless of a coun- of child labor. UN Convention on the Rights of the Child, Article 32:1. try's level of development UN Global Compact ("effectively abolish child labor"). including the elimination of UN Norms (transnational corporations shall "respect the rights of children to be protected child labour and freedom from from economic exploitation as forbidden by the relevant international instruments and discrimination in employment." national legislation, as well as international human rights and humanitarian law"). Commentary to UN Norms: Economic exploitation of children includes employ- ment or work in any occupation before a child completes compulsory schooling, and, in any case, before the child reaches the age of 15. Commentary to UN Norms: Transnational corporations "shall not employ any person under the age of 18 in any type of work that by its nature or circum- stances is hazardous, interferes with the child's education, or is carried out in a way likely to jeopardize the health, safety, or morals of young persons." Commentary to UN Norms: Transnational corporations may employ persons age 13 to 15 years, but only "in light work" and "if national laws or regulations permit" (and mining would not fit definition of light work). Commentary to UN Norms: Provides further protections against use of child labor, including that transnational corporations "using child labor shall create and imple- ment a plan to eliminate child labor." IFC will not support projects that use Forced or Harmful Child Labor. `Harmful Child Labor' consists of the employment of children that is economically exploitative, or is likely to be hazardous to, or interfere with, the child's education, or to be harmful to the child's health, or physical, mental, spiritual, moral, or social development. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 75 CRS_Annex A 3/3/04 12:12 Page 76 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Wages, Benefits, "All companies should ensure "Will set base pay and benefits at competitive levels Companies should "pro- and Terms of just and favorable conditions of within each national and business framework." vide jobs and compensa- Employment work, reasonable job security and tion that improve workers' fair and adequate remuneration living conditions." and benefits." Hours of Work Provide working condi- tions that respect each employee's health and dignity. 76 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 77 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix "Pay policy is to administer wages and "Offers equal opportunities to all its "Overall compensation program is care- In the Covenant "Security for salaries in a manner that will maintain employees, making sure that each of fully designed to attract and retain tal- Workers" the company does not: a competitive position sufficient to them receives fair treatment based on ented men and women. The program is "reduce the category of the work- attract and retain high-caliber person- merit, without discrimination of any structured to reward results and provide ers or cut their salary, except in nel, to provide incentive and to reward kind." consistent and fair treatment. It includes cases foreseen in the law or in this high-level performance." competitive salaries and comprehensive ACT; or "Pay-for-performance philosophy benefit programs that consider industry refuse by any means the practice ensures that employees' salaries standards, local customs and legal of the rights or the benefits of the reflect their current and sustained per- requirements. Total compensation, includ- assigned securities by the workers formance relative to that of others paid ing benefits, is competitive with levels in this agreement or in the law, as in the same categories. Reviewed at offered by other leading international well as, to say farewell or give least annually." petroleum and petrochemical companies." sanction because of that practice." In accordance with the Sullivan Principles, compensates employees to enable them to meet at least their basic needs and provide the opportunity to improve their skill and capability in order to raise their social and eco- nomic opportunities." "The working hours represent one of Follows, at minimum, all local legal the principal elements in the organi- requirements. zation of work... within the context of a normative system which combines the need for flexibility of the hours of work with the safeguarding of the individual and collective rights." "Mean to seek a targeted operation, aimed principally at defining different organization of the work, such as, management of the working hours, part time, solidarity contracts." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 77 CRS_Annex A 3/3/04 12:12 Page 78 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Wages, Benefits, "Companies must recognise that everyone and Terms of has the right to work, to free choice of Employment employment, to just and favourable (Continued) conditions of work and to protection against unemployment." Hours of Work "Companies must realise that everyone has (Continued) the right to rest and leisure, including rea- sonable limitations of working hours and periodic holidays." 78 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 79 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Salary systems shall be competitive "Wages, benefits and terms are Enterprises should "observe stan- and shall reflect results achieved. Shall designed to attract and retain top dards of employment and industrial offer a total compensation that is com- quality talent. Each element of com- relations not less favourable than petitive and in accordance with good pensation is targeted to be competi- those observed by comparable industry standards in the country con- tive within the respective labor market employers in the host country." cerned." and provide significant opportunity for "In 2002, continued to introduce per- personal growth based on perfor- formance-related bonus systems in mance." major parts of the group." "Committed to provide its employees with a working environment that is con- ducive to development and advance- ment. Provides employees with numerous opportunities to improve their skills and proficiencies, further their education and otherwise achieve promotions" within the company. "Offers qualified employees a general educational assistance program that provides up to 100% tuition and fee coverage to complete work-related courses, degrees and programs at accredited institutions." " Working hours should be in accor- "Work practices are consistent with "Employment and industrial relations dance with local law or agreements. responsible industry practices and standards are understood to include Under normal circumstances, on a local customs." compensation and working-time weekly basis, an employee should not arrangements." work in excess of 48 hours and 12 hours overtime, and be given a minimum of 24 hours continuous rest. Where operation of the business makes it necessary to deviate from this, measures should be taken to secure sufficient time of rest between each working period, and the overall working situation must not be poorer than the prevailing standard." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 79 CRS_Annex A 3/3/04 12:12 Page 80 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Wages, Benefits, "No employee is paid less than the legal mini- "The company shall ensure that wages paid and Terms of mum wage, nor has to work more than 48 hours for a standard working week shall always Employment a week." meet at least legal or industry minimum stan- (Continued) "Employees are rewarded for personal perfor- dards and shall be sufficient to meet basic mance and team achievements. Rewards for needs of personnel and to provide some dis- senior staff are also linked to how they help cretionary income." Shell contribute to sustainable development. " The company shall "ensure that wage and "In 2002, options and share purchase pro- benefits composition are detailed clearly and grammes were extended to give more employ- regularly for workers." ees a share in the success of the company. Some 10% of employees received stock options and 28% were in share purchase programmes." Hours of Work "No employee is paid less than the legal minimum "The company shall comply with applicable (Continued) wage, nor has to work more than 48 hours a week." laws and industry standards on working hours. The normal workweek shall be as defined by law but shall not on a regular basis exceed 48 hours. Personnel shall be provided with at least one day off in every seven day period. All overtime work shall be reimbursed at a premium rate and under no circumstances shall exceed 12 hours per employee per week." 80 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 81 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "Levels of pay are about average ILO Recommendation No. 116 on Reduction of Hours of Work (minimum for the industry, and never below wage and benefits are to be at least prevailing industry standard). the national statutory minimum of ILO Convention No. 95 (Protection of Wages). a country." UN Norms: transnational corporations "shall provide workers with remu- "Issues of pay and remuneration neration that ensures an adequate standard of living for them and their are determined in accordance families. Such remuneration shall take due account of their needs for with local conditions." adequate living conditions with a view towards progressive improvement." Commentary on UN Norms: Transnational corporations shall "provide work- ers with fair and reasonable remuneration for work done or to be done, freely agreed upon or fixed by national laws or regulations (whichever is higher), payable regularly and at short intervals in legal tender, so as to ensure an adequate standard of living for workers and their families. Commentary on UN Norms: No deductions from worker's wages already earned for disciplinary measures. Commentary on UN Norms: transnational corporations shall keep detailed written records on each worker's hours of work and wages paid. Commentary on UN Norms: transnational corporations shall not limit in any manner the freedom of workers to dispose of their wages. "Hours of work is in accordance ILO Recommendation No. 116 on Reduction of Hours of Work. with the law or requirements in the Commentary on UN Norms: transnational corporations "shall not require different countries in which it any worker to work more than 48 hours per week or more than 10 hours in operates." one day. Voluntary overtime for workers shall not exceed 12 hours per week and shall not be expected on a regular basis. Compensation for such overtime shall be at a rate higher than the normal rate. Each worker shall be given at least one day off in every seven-day period. These protections may be adjusted to meet the different needs of management personnel; construction, exploration, and similar workers who work for short periods (e.g., a week or two) followed by a comparable period of rest; and profes- sionals who have clearly indicated their personal desire to work more hours." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 81 CRS_Annex A 3/3/04 12:12 Page 82 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Non-Discrimination "All companies should ensure "Ensures that leadership opportunities and develop- "Avoid discriminatory and Diversity that their policies and practices ment are open to all on merit." practices and guarantee prevent discrimination based on "Will practise inclusion by eliminating intentional equal treatment and ethnic origin, sex, colour, lan- and unintentional exclusionary opportunity in areas such guage, national or social origin, behaviours." as gender, age, race, and economic status, religion, political religion; promote in the or other conscientiously held business itself employ- beliefs, birth or other status." ment of differently abled people in places of work where they can be gen- uinely useful." Harassment, Abuse, "Company policy should "include "Will practise inclusion by eliminating intentional "Engage in good faith and Disciplinary measures to deal with sexual or and unintentional exclusionary behaviours." negotiations when con- Action racial harassment, and to prohibit flict arises; provide work- national, racial, or religious ing conditions that hatred." respect each employee's "Company should not engage in dignity." or support the use of corporal punishment, mental or physical coercion, or verbal abuse." 82 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 83 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix "Committed to following the laws, within "Offers equal opportunities to all its Policy to "provide equal employment "Creating work and development and outside the US, prohibiting discrimi- employees, making sure that each of opportunity in conformance with all applic- opportunities for people, which nation in employment matters (i.e. hiring, them receives fair treatment based able laws and regulations to individuals includes reinvesting the results rate of pay, promotion, demotion and ter- on merit, without discrimination of who are qualified to perform job require- achieved." mination) because of age, race, color, any kind." ments regardless of their race, color, sex, "Equality of rights for men and marital status, sex, sexual orientation, "Workers cannot be discriminated religion, national origin, citizenship status, women not only when they start religion, national origin or disability." against on account of their race, sex, age, physical or mental disability, veteran working for the company but also Has "affirmative action programs designed religious creed, political opinions or or other legally protected status." when they are promoted." to provide equal employment opportunity for social origin. Men and women must "Administers its personnel policies, pro- "No discrimination by race, sex, lan- women and members of racial and ethnic receive equal salary treatment for grams, and practices in a nondiscrimina- guage, religion, political party, nation- minority groups, qualified disabled persons, work of equal value, and the princi- tory manner in all aspects of the ality, economical position or any and Vietnam and disabled veterans." ples of equal opportunity must be employment relationship, including recruit- other condition." Learns from and respects the cultures in applied." ment, hiring, work assignment, promotion, which it works. Values and demonstrates Commits to operate within the frame- transfer, termination, wage and salary respect for the uniqueness of individuals work of the UN UDHR, the administration, and selection for training." and the varied perspectives and talents Fundamental Conventions of the ILO "Managers and supervisors are responsi- they provide. Has an inclusive work envi- and the OECD Guidelines on ble for implementing and administering ronment and actively embrace a diversity of Multinational Enterprises, with partic- policy against discrimination, for maintain- people, ideas, talents and experiences." ular reference to the areas concern- ing a work environment free from unlawful "Actively expresses its belief in the ing of the rejection of all forms of discrimination, and for promptly identifying value of diversity through principles, discrimination. and resolving any problem area regarding practices and accountability." equal employment opportunity." "Maintains a working environment in "Demands that there shall be no "Assures a work environment free from which employees may perform their harassment in personal relationships sexual, racial, or other harassment." jobs without physical or verbal harass- either inside or outside the company." "Harassment is any inappropriate conduct ment because of race, marital status, "Harassment is the creation of an which has the purpose or effect of: sex, sexual orientation, color, national intimidating, hostile or isolating envi- creating an intimidating, hostile, or offen- origin, religion, age, disability or veteran ronment for one or more employee; sive work environment; status." unjustified interference in the work unreasonably interfering with an individ- Important for all employees to know and performed by others; [and] the plac- ual's work performance; or understand that any form of harassment ing of obstacles in the way of the affecting an individual's employment will not tolerated. work prospects and expectations of opportunity." others merely for reasons of personal competitiveness." "Harassment will not be tolerated. Forms of "Does not tolerate sexual harassment." harassment include, but are not limited to, unwelcome verbal or physical advances and sexually, racially, or otherwise derogatory or dis- criminatory materials, statements, or remarks." "All employees, including supervisors and managers, will be subject to disciplinary action up to and including termination for any act of harassment." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 83 CRS_Annex A 3/3/04 12:12 Page 84 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Non-Discrimination Prohibits discrimination against any employee or "Companies must recognise that all people and Diversity person with whom it does business "on the basis have the right to work `without discrimina- (Continued) of age, race, color, religion, sex, disability, national tion of any kind as to race, colour, sex, lan- origin, sexual orientation, covered veteran or other guage, religion, political or other opinion, legally protected status." nationality or social origin, property, birth or "Promotes diversity within our workforce. other status." Diversity of people and ideas will provide the Companies must recognise that `everyone Company with a business advantage. We believe without discrimination has the right to equal diverse companies will compete more success- pay for equal work." fully in today's world economy." Harassment, Abuse, "Harassment and violence in the workplace are and Disciplinary strictly prohibited and will not be tolerated. Action (Continued) Conduct that creates an unwelcome or uncomfort- able situation or hostile work environment, such as unwelcome advances or requests for sexual favors, inappropriate comments, jokes, intimida- tion, bullying, or physical contact, may be forms of workplace harassment. Employees should avoid any actions or words that might be interpreted by another as harassment or a threat of violence." 84 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 85 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Aninclusiveworkcultureisimportanttous. "Committed to a policy of equal "Does not permit prejudice or discrimina- Enterprises should "not discriminate Wedonotacceptanyformofharassment,or employment opportunity, a diverse tion of any kind on the grounds of race, against their employees with respect discriminationonthebasisofgender,race, workforce and a workplace free from color, nationality, place of birth, religious, to employment or occupation on such color,religion,nationalorethnicorigin,sexual discrimination hostility or harassment." gender, sexual orientation, social class, grounds as race, colour, sex, religion, orientation,culturalorsocialbackground,dis- "All employees and applicants will be marital status, age, weight, height or physi- political opinion, national extraction ability,maritalstatus,ageorpoliticalopinion." given consideration without regard to cal condition." or social origin, unless selectivity "Appreciates and recognizes that all peo- race, color, religion, ethnicity, gender, "Creating work and development opportu- concerning employee characteristics ple are unique and valuable, and should national origin, disability, age, sexual nities for people, which includes reinvest- furthers established governmental be respected for their individual abilities." orientation, disability or veteran sta- ing the results achieved." policies which specifically promote "Regards diversity as an important source tus. This applies to all phases of "All Odebrecht Group Members have equal greater equality of employment of innovation and healthy decision-making. employment including recruitment work opportunities." opportunity of relates to the inherent Sets diversity targets in relation to gender, and hiring, issues of compensation, "When recruiting, hiring, delegating chal- requirements of a job." experience, age and cultural background." promotion, training, assignment of lenges and responsibilities, evaluating per- "Employees shall have equal employment work, and performance evaluation." formance and determining remuneration, opportunity and fair treatment of all "Each employee has the right to be all of these procedures must be based employees shall be provided. Employees treated with dignity and respect." exclusively on the individual's merit, per- and business units shall only use merit, "Every manager is responsible for sonal and professional qualifications and qualifications and other professional crite- the communication, implementation potential, in accordance with the Group's ria as basis for employee-related decisions and enforcement of this policy at Personnel Policies." in Hydro and to show commitment to devel- each location and for complying with oping programs and actions to encourage all applicable anti-discrimination laws a diverse organization based on the princi- and regulations." ple of equal opportunity." "Does not accept any form of harass- "Committed to a workplace free from hostil- "Group Leaders must guarantee their team ment, discrimination or other behaviour ity or harassment. Hostility or harassment of members a working environment free of that colleagues or business associates any employee based upon age, color, gen- insinuations or restrictions of any kind to may regard as threatening or degrading." der, national origin, religion or upon any prevent personal embarrassment." Violation of its Code of Conduct "will racial, ethnic or other personal characteris- "No intrusion into people's private lives not be tolerated and may in accordance tics is a violation of this policy and will not will be allowed in or outside of the work- with relevant legislation lead to internal be tolerated. Some examples of such pro- place. The monitoring or interception of disciplinary actions, dismissal or even hibited conduct include, but are not limited telephone calls, correspondence or emails criminal prosecution." to, any unwelcome sexual advance or is not countenanced." request for sexual favors; any employment "Leaders are not allowed to use their posi- decision conditioned upon the performance tion to solicit favors or personal services of sexual favors; verbal, visual or physical from team members. No threats or harass- abuse; any intimidation or other hostile acts; ment will be tolerated." the creation of a hostile environment; and any other act that is offensive or interferes with another employees performance." "Any violator shall be subject to disci- pline, up to and including termination of employment." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 85 CRS_Annex A 3/3/04 12:12 Page 86 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Non-Discrimination Created a Gender Analysis Working Group. The "Committed to giving all employees the opportu- "The company shall not engage in or support and Diversity objective is to enhance the member companies' nity to develop their expertise and skills in accor- discrimination in hiring, remuneration, (Continued) "expertise and experience in gender analy- dance with our business needs and their access to training, promotion, termination or sis...to promote equal access of both men and potential." retirement based on race, caste, national women [in the oil and gas sector]. Equity "Developed tools to encourage and track origin, religion, disability, gender, sexual ori- between men and women will ensure sustain- progress in the area of diversity and equal oppor- entation, union membership, political affilia- able development." tunity." tion, or age." Harassment, Abuse, "The company shall not allow behaviour, and Disciplinary including gestures, language and physical Action (Continued) contact, that is sexually coercive, threaten- ing, abusive, or exploitative." "The company shall not engage in or support the use of corporal punishment, mental or physical coercion, and verbal abuse." "The company shall ensure that deductions from wages are not made for disciplinary purposes." 86 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 87 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "Upliftment is a top "Committed to a set of core labour standards "Ensures the development ILO Discrimination (Employment and Occupation) Convention, priority, and is being which we believe should be universally applied, of its employees' profes- No. 111). tackled. One of the regardless of a country's level of development sional skills and their UN Global Compact ("eliminate discrimination in respect of most significant including the elimination of child labour and careers without discrimina- employment and occupation"). efforts is Black freedom from discrimination in employment." tion, in particular on the UN Norms (transnational corporations shall "ensure equality of Economic "Wants diversity in age, gender and cul- basis of race, gender, mem- opportunity and treatment, as provided in the relevant interna- Empowerment tural background." bership of any political, reli- tional instruments and national legislation as well as international through black owner- "Recognises the opportunities for innovation, gious, union organization or human rights law, for the purpose of eliminating discrimination ship and participation creativity and insight which lie in bringing any minority group." based on race, color, sex, language, religion, political opinion, in the oil together people with different backgrounds in "Pays particular attention to national or social origin, indigenous status, disability, age (except industry." our company. Believes greater diversity will its employees conditions, for children who may be given greater protection), or other status help us thrive in a business environment notably regarding the of the individual unrelated to the inherent requirements to perform which is increasingly complex and global." respect of the individual, the the job or complying with special measures designed to overcome "Statoil currently has 15% women in man- absence of discrimination past discrimination against certain groups") . agement positions at all levels of the com- and the protection of HS." pany though their goal is 20%." Percentage women: Home Country: 27% Worldwide: 31% Women at managerial level: Home country: 15% Worldwide: 23% "In Norway about 80% of the employees UN Norms ("Transnational corporations and other business enter- are members of Trade Unions." prises shall ensure equality of opportunity and treatment, as pro- vided in the relevant international instruments and national legislation as well as international human rights law"). Commentary to UN Norms: "No worker shall be subject to direct or indirect physical, sexual, racial, psychological, verbal, or any other discriminatory form of harassment or abuse as defined above. No worker shall be subject to intimidation or degrading treatment or be disciplined without fair procedures." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 87 CRS_Annex A 3/3/04 12:12 Page 88 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Freedom of "All companies should ensure "Leaders will initiate and encourage open and Association and that all employees are able to timely two-way dialogue with their teams on all Collective Bargaining exercise their rights to freedom issues relating to business performance." of expression, peaceful assem- "Recognizes, consistent with local legislation, the bly and association, as well as a right of every employee to form or join trade fair means of collective bargain- unions." ing without discrimination, "Will seek to work in good faith with trade unions including the right to form trade and other bodies that our employees collectively unions and to strike." choose to represent them within the appropriate local legal framework." Labor/Management "All companies should ensure Policy to "ensure "Leaders will initiate and encourage open and Companies should "be Relations that all employees are able to employees and timely two-way dialogue with their teams on all honest in communica- exercise their rights to freedom management at all issues relating to business performance." tions with employees and of expression, peaceful assem- levels understand "Will use upward feedback and peer review open in sharing informa- bly and association, as well as a their stewardship process to provide performance feedback to super- tion, limited only by legal fair means of collective bargain- responsibilities." visors and managers." and competitive ing without discrimination, "Recognize, consistent with local legislation, the restraints." including the right to form trade right of every employee to form or join trade unions and to strike." unions." "Will seek to work in good faith with trade unions and other bodies that our employees collectively choose to represent them within the appropriate local legal framework." 88 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 89 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix "Employee or ChevronTexaco is free "All workers are entitled to belong to "Allows free association in Trade to terminate." trade unions of their choice and to Unions and the collective bargaining." "If applicable, a collective bargaining benefit from fundamental union Workers and trade unions "have a agreement or written contract will rights." right to practice syndicalism in the control a laboring dispute." "Labor representatives are not to be company, namely, through represen- In accordance with the Sullivan subjected to any type of discrimina- tatives of Trade Unions, syndical and Principles, the company respects tion on account of their activities in intersyndical commissions." employees' voluntary freedom of representing workers." association. Commits to operate within the frame- work of the UN UDHR, the Fundamental Conventions of the ILO and the OECD Guidelines on Multinational Enterprises, with partic- ular reference to the areas concern- ing freedom of association. "Intends to adopt an original model of "The key to any successful company is industrial relations, centered upon its employees. Exxon Mobil strives for a participation, as an effective instru- workforce that not only is premier in its ment for the active management of capabilities but whose diversity is rep- processes of change and to guaran- resentative of the communities where tee, within a framework of common we do business." values and objectives, that the "We will strive to hire and retain the choices pursued will be shared as far most qualified people available and as possible." maximize their opportunities for suc- "Confirms the commitment to respect cess through training and development. human and social rights in all activi- We are committed to maintaining a safe ties and to establish new ways of work environment enriched by diversity exchanging information on topics per- and characterized by open communica- taining to industrial relations at world tion, trust, and fair treatment." level, for the purpose of improving and promoting good labor practices." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 89 CRS_Annex A 3/3/04 12:12 Page 90 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Freedom of "Companies must recognise the right of Association and everyone to form trade unions and join the Collective trade union of his/her choice." Bargaining "Companies must recognise the right to (Continued) strike provided that it is exercised in confor- mity with the laws of the particular country. Companies must promote collective bargain- ing as the most fair way for employer- employee relationship." Labor/Management "Companies must recognise the right to Relations strike provided that it is exercised in confor- (Continued) mity with the laws of the particular country. Companies must promote collective bargain- ing as the most fair way for employer- employee relationship." 90 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 91 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Recognizes the right to collective Respects "employees' voluntary free- Enterprises should "respect the rights bargaining." dom of association with respect to of their employees to be represented causes, organizations or political par- by trade unions...and engage in con- ties they may wish to support or join." structive negotiations." "Takes part in a constructive and "Strives to maintain constructive and Enterprises should: "provide facilities open dialogue with our employees." respectful relationships with all its to employee representatives as may "As a Hydro leader, you should com- social partners." be necessary to assist in the develop- municate regularly with your reports ment of effective collective agree- and their representatives and make ments...and provide information to sure that they understand the com- employee representatives which is pany's market situation and competi- needed for meaningful negotiations tiveness as well as its key decisions on conditions of employment... and] and processes. You should give your promote consultation and cooperation reports the opportunity to present between employers and employees their ideas, comments and sugges- and their representatives on matters tions for improvement." of mutual concern." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 91 CRS_Annex A 3/3/04 12:12 Page 92 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Freedom of "Has a number of ways to protect employee welfare and "The company shall respect the right of Association and enable staff to discuss employment issues. Do not stop any all personnel to form and join trade Collective employee from joining a union and almost a fifth of Shell unions of their choice and to bargain Bargaining employees are estimated to be members. In many coun- collectively." (Continued) tries, unions discuss and negotiate with Shell companies on employment conditions. Nearly all employees have access to a staff forum, a grievance procedure or a support system--such as help lines, independent counselors, doc- tors or ombudsmen. Staff councils include the Shell European Forum, a consultation body of management and staff, representing more than 40,000 of our employees. Employment grievance procedures were used on 541 occa- sions in 2002 (592 in 2001). Labor/Management "To respect the human rights of their employees, to provide their "The company shall provide for non- Relations employees with good and safe conditions to work, and good and management personnel to choose a rep- (Continued) competitive terms and conditions of services, to promote the resentative from their group to facilitate development and best use of human talent and equal opportu- communication with senior management nity employees in the planning and direction of their work, and in on matters related to this standard." the application of these principles within their company." We have a number of ways to protect employee welfare and enable staff to discuss employment issues. We do not stop any employee from joining a union and almost a fifth of Shell employees are estimated to be members. In many countries, unions discuss and negotiate with Shell companies on employment conditions (see data tables). Nearly all employ- ees have access to a staff forum, a grievance procedure or a support system--such as help lines, independent coun- selors, doctors or ombudsmen. Staff councils include the Shell European Forum, a consultation body of management and staff, representing more than 40,000 of our employees. Employment grievance procedures were used on 541 occa- sions in 2002 (592 in 2001). 92 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 93 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "Committed to a set of core labour standards which Multiple and extensive ILO Conventions (including we believe should be universally applied, regard- Freedom of Association and the Protection of the Right to less of a country's level of development including Organize Convention, No. 87, and Right to Organize and freedom of association and collective bargaining." Collective Bargaining Convention, No. 98). "Freedom of association is not guaranteed in all UN Global Compact ("Businesses should uphold the free- countries where Statoil is present. Neither is the dom of association and the effective recognition of the right to collective bargaining. We have neverthe- right to collective bargaining"). less seen to it that all our employees have a voice UN Norms (transnational corporations shall "ensure the in the workplace, whether through councils, com- freedom of association and effective recognition of the mittees or general assemblies. We believe this right to collective bargaining by protecting the right to helps instill a sense of trust and belonging." establish and, subject only to the rules of the organization "A commitment to core labour standards pro- concerned, to join organizations of their own choosing motes dialogue and cooperation between without distinction, previous authorization, or interfer- employees and employers." ence"). "Encourages feedback from external stakehold- ers on issues of labour relations and standards. We accordingly have an information-sharing agreement with the International Federation of Chemical, Energy, Mines and General Workers Unions (ICEM), an international trade union sec- retariat with 20 million members in 110 countries." "In Norway about 80% of the employees are ILO Tripartite Declaration members of Trade Unions." "A commitment to core labour standards pro- motes dialogue and cooperation between employees and employers." "Encourages feedback from external stakehold- ers on issues of labour relations and standards. Have an information-sharing agreement with ICEM, an international trade union secretariat with 20 million members in 110 countries." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 93 CRS_Annex A 3/3/04 12:12 Page 94 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Training and "Company should enable the "Will encourage individuals to formulate personal Companies should Education establishment of programs for the development plans and lay an active part in shaping "encourage and assist effective human rights education their careers." employees in developing and training of all employees." "Will coach people in their development and make relevant and transferable training accessible to all to build relevant skills." skills and knowledge." "Will actively encourage mentoring relationships to facilitate continual learning growth." "Will use systematic selection and placement processes to make the best use of people's skills and abilities." "Our workforce will be carefully selected and trained, and their skills and competencies regularly assessed." Security Practices "All companies should ensure "No information should be passed to security forces "Support peace, security, that any security arrangements that could be used to target individuals for extra- diversity, and social inte- protect human rights and are judicial actions." gration." consistent with international "Establish transparent relationships and arrange- A business "should not standards for law enforcement. ments with public forces and security contractors, trade in arms or other They should include measures to with suitable contractual conditions of engagement materials used for terror- prevent excessive force, as well that include safeguards to prevent human rights ist activities, drug traffic, as torture or cruel, inhuman or abuses." or other organized crime." degrading treatment." "Provide a secure working environment by protect- ing ourselves, our assets and our operations against risk of injury, loss or damage resulting from criminal or hostile acts." Participated in and supported the process of devel- oping the Voluntary Principles on Security and Human Rights. 94 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 95 ChevronTexaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix "Committed to developing the abilities and skills of each "Will strive to hire and retain the most qualified "Our social role as an employee so that their energy and creativity can have people available and maximize their opportunities economic operator full expression for the fulfillment of their potential." for success through training and development." involves responsible "Acknowledges and promotes the development of indi- action, contributing vidual employees' skills and know-how as well as team towards the creation of work so that individuals can fully express their energy, jobs, education, train- creativity and potential." ing and personal devel- "As part of the intensive process of development cur- opment or our workers, rently underway at Eni, the strategic importance placed and active support for on human resources has led to the preparation of the the society initiatives in RES Program of Recovery, Efficiency and Development." the areas and markets Established "Eni Corporate University, an ad hoc com- where Galp Energia pany which represents the focal point for all the activities has a presence." forming part of the cycle of knowledge, starting with ori- entation, recruitment and selection and including on-the- job training and relations with academic institutions." "Life Long Learning Projects promote employees' par- ticipation in company life, develop the professional qualifications needed for strongly evolving activities and retrain workers whose skills are no longer appro- priate to the changes now taking place in industry." Participated in and supported "Upgraded the organizational structures and the Recognizes "that security and respect for human the process of developing the managerial processes assigned to corporate secu- rights can and should be consistent. The promul- Voluntary Principles on rity." gation of the Voluntary Principles on Security and Security and Human Rights. "Pursues a security policy aimed at combining the Human Rights by the governments of the US and effectiveness of the actions with the full respect of the UK is an affirmation of the constructive role the human and social rights of the populations in business can play in protecting human rights." the countries in which the Company operates." Believes its "stand on human rights sets a positive "Constantly working to promote and maintain rela- example for governments in the countries in which we tions based on transparency and on consultation operate. In countries beset by local insurgencies and with the local communities. Even in the event of sit- armed conflict, company has made it clear that it con- uations of crisis, the need to guarantee conditions demn all human rights violations." Having "dealt with of security for employees and facilities is pursued these issues for many years it believes its efforts have through dialogue, based on procedures provided for improved the quality of life in these communities." by the development and cooperation agreements "Integrated Security Management provides a struc- signed with the communities with which the tural approach to protecting personnel, information Company interacts." and facilities without compromising the rights of legit- imate public interests. It is consistent with the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials, the UN Code of Conduct for Law Enforcement Officials, and the International Human Rights Standard for Law Enforcement." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 95 CRS_Annex A 3/3/04 12:12 Page 96 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Training and "Will ensure that employees are adequately "Companies must recognise that all people Education (Continued) trained and educated on Health Environment & have the right to `technical and vocational Safety (HE&S) issues." guidance and training programs, policies and techniques to achieve steady economic, social and cultural development." Security Practices Companies should "review all policies and (Continued) practices relating to private security employees." "Companies should not operate in areas where such operations require the use of military forces or excessive security in order to maintain the operation. Companies should suspend operations where existing operations require such military force to operate until agreement on the operations could be reached with local communities and/or their representatives." 96 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 97 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Training a whole new generation of "Committed to increasing employment "This is the spirit of education through Employees should: "to the greatest Angolan oil experts to lend their ideas opportunities for all workers and have pro- work, the main form of education at extent practicable, employ local per- and skills to the industry." grams in place to recruit and train local Group subsidiaries, which is supple- sonnel and provide training with a Believes that "two of the most valu- workers in international operations." mented by education for work through view to improving skill levels, in co- able things it can provide are educa- "Draws employees from the diverse classes, partnerships and other forms of operation with employee representa- tion and opportunity. Has undertaken cultures and locations in which it continuous educations." tives and, where appropriate, a project designed to give young stu- operates. Overseas operations have relevant governmental authorities." dents from Angola the opportunity to on-going, active policies in place to study petroleum related subjects." train national employees for jobs at all "Brought forward a commitment to levels and to increase local hiring and our operations in Angola to train and reduce expatriate staffing." develop a workforce consisting "Technical training that allows employ- mainly of Angolans, who will one day ees to stay up-to-date in their fields of be able to run our operations there work, is available to all employees at all without expatriate assistance." locations. The technical training coin- cides with many of the company's safety programs and is a critical com- ponent of its strategy to transfer tech- nology to the local workforce." "Employees are guided to complete development plans whereby, together with their supervisors, they identify their career goals and the skills and training they view as necessary to increase opportunities for enhanced perfor- mance and personal advancement." "Will safeguard our property and Signatory of the "Voluntary Principles employees against industrial espi- on Security and Human Rights in con- onage, theft/ destruction/ tampering junction with the US State Department with our documents/data/ know-how/ and the British Foreign Service. The products and other assets, sabotage Voluntary Principles guide companies and terrorist action." in maintaining the safety and security of theiroperationswithinanoperatingframe- work that ensures respect for human rights and fundamental freedoms." "Business units have security policies in place to ensure the safety of employees." "Corporate human rights and security practices policy is pending approval." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 97 CRS_Annex A 3/3/04 12:12 Page 98 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Training and "Member companies will contribute to the "Offers a whole range of internal and external train- "The company shall ensure that all personnel Education (Continued) creation and strengthening of an environ- ing courses and programmes covering important receive regular and recorded health and mental awareness by means of education aspects of our business. However, the focus in our safety training, and that such training is and training of their workers and those of day-to-day operations is not so much on formal train- repeated for new and reassigned personnel." their contractors on their environmental ing as on work tasks. We develop most of our exper- policies and management systems, as well tise through challenging assignments." as on the corresponding specific programs "Runs social investment programmes. Shell's contri- and practices." bution to these programmes was almost $96 million in 2002. The largest share--more than a quarter--is spent on education and skills development." Security Practices "Revised approach to safeguarding employees in the light (Continued) of increased risks of attacks and kidnapping of staff in some countries--con-forming to UN standards." "Need to protect our people, assets and shareholders' investments--sometimes with armed guards--with- out undermining the human rights in the countries where we operate." "Expect protection from local law enforcement, in line with national and international laws. Where this is inadequate, managers may seek authority, or be required by law, to use security personnel. Use armed security only when it is a legal or government requirement, or where thereisno acceptablealternativetomanagetherisk." In 2002, Shell companies in 95 countries used security per- sonnel. In 23 countries, Shell companies used armed secu- rity. In all cases where Shell staff are used for armed security, Shell's Guidelines on the Use of Force and Rules of Engagement are followed. In two countries, where armed security is provided by contractors, they do not operate in line with Shell's Guidelines, but plans are in place to correct this situation. In addition, in 28 countries, joint ventures and contractors also used armed security. Those under Shell's operational control are required to fol- low Shell's Guidelines and it promote its use in other ven- tures. In 2002, contractors and joint ventures in 20 countries operated according to Shell's Guidelines. 98 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 99 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "Will contribute to value creation, ILO Tripartite Declaration developing expertise and transfer of experience in the countries where we operate." "Annually spends in excess of NOK 200 million, or more than NOK 12,000 per employee, on Health, Safety and Environment (HSE) training with the aim of building awareness and expertise." "All employees have been granted a personal PC with a training pro- gramme." "The need for thor- Recognizes that "the biggest blow to UN Norms: "Security arrangements for transnational corporations and ough, all embracing, the reputation of oil companies over other business enterprises shall observe international human rights threat and risk the past few years has probably norms as well as the laws and professional standards of the country or assessments leading been their association with the countries in which they operate." to effective security security forces assigned to protect UN Principles on the Use of Force and Firearms. and contingency their interest in conflict-prone or UN Code of Conduct for Law Enforcement Officers. planning, remains of conflict-ridden countries." Voluntary Principles on Security and Human Rights: Adherents "express" great importance." While, Statoil has yet to confront a support for the voluntary principles regarding security and human rights "Cooperate with challenge of this nature in our oper- in the extractive sector, falling into three categories: (1) Effective risk police and other ations, "a place to start is with the assessment; (2) Interactions between companies and public security; and authorities, but do schooling of security forces on the (3) Interactions between companies and private security. not simply ask them basis of guidelines such as the for help--offer them Voluntary Principles on Security and help in fighting Human Rights." crime." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 99 CRS_Annex A 3/3/04 12:12 Page 100 Amnesty International, Human Australian Institute Caux Roundtable (The), Rights Principles for Companiesi of Petroleum (AIP)ii BP p.l.c.iii Principles for Businessv Monitoring and "Companies should establish pro- Policy to "monitor "Provide and explain the impact of our commitment Recommends use of its Compliance cedures to ensure that all opera- compliance at the and policy expectations on Ethical Conduct to third proprietary self-assess- Framework tions are examined for their operating level with parties or intermediaries before we engage them to ment and implementation impact on human rights, and safe- company policy, gov- act on BP's behalf." management tool for guards to ensure that company ernment regulations, "Created an investigation and Fraud Awareness monitoring compliance staff are never complicit in human and industry guide- Network to provide an independent centre of exper- with aspirational standards. rights abuses." lines." tise for the prevention of fraud and the investigation of serious violations of company policy, conflicts of interest, breaches of ethical conduct, fraud, and other criminal acts." "Every Business Unit Leader and Function Head is required to sign a certificate each year attesting that the ethical conduct policy has been adopted and that procedures are being or have been imple- mented to ensure compliance." "Regularly provide assurance that the processes in place are working effectively. While all employees and contractors are responsible for HSE perfor- mance, line management is accountable for under- standing and managing HSE risks." "Fully participate in hazard identification and risk assessments, Assurance Management System Assessments and reporting of HSE results." Incidents "reported, investigated and analysed to prevent recurrence and improve performance." "Will periodically assess the implementation of and compliance with these Expectations to assure our- selves and our stakeholders that management processes are in place and working effectively." Will "openly report performance and consult with people outside the company to improve our under- standing or external and internal HSE issues asso- ciated with our operations."iv 100 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 101 Chevron Texaco Corporationvi Eni S.p.A.vii Exxon Mobil Corporationviii Galp Energia, SGPS, S.A.ix Directors and employees are "The Eni Industrial Relations Council Policy to "implement programs and appro- "required to comply with the Business is to be created, comprising joint rep- priate protective measures to control Conduct & Ethics (BC&E) Code and resentatives from Eni Personnel such risks, including appropriate monitor- the Manual of Compliance Procedures Management from the Group's com- ing of its potentially affected employees." and Guidelines." panies and from the National "Managers and supervisors are responsi- "Appointed a Corporate Compliance Secretariat of the Unions, who have ble for implementing and administering its Committee to govern the company- signed this protocol." [equal employment opportunity] policy, for wide compliance program." "To ensure application of the princi- maintaining a work environment free from "Employs a hotline for anonymous ples and ILO conventions referred to unlawful discrimination, and for promptly employee tips." above, undertakes to carry out ade- identifying and resolving any problem "Failure to comply with the BC&E quate monitoring activities by means area regarding equal employment Code may result in disciplinary action of its control instruments. In the opportunity." up to and including termination, course of the annual meeting, appro- depending on the nature and severity priate procedures may be agreed on of the violation." for the involvement of local trade "Verify conformity with company pol- unions or ­ where these do not exist icy and government regulations. ­ of representatives designated by Ensure that employees and contrac- the trade unions signing the present tors understand their safety, health agreement." and environmental responsibilities." "Commits itself to spreading the "With a view to continuous improve- knowledge of the Company values ment, each company/ division periodi- and principles within and outside the cally carries out systematic Group and to institute adequate con- monitoring to check variances trol procedures." between the results it has achieved and the technical-operating targets set in its programmes." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 101 CRS_Annex A 3/3/04 12:12 Page 102 Mineral Policy Institute, Principles for the Conduct of Company Operations International Chamber of Commerce (ICC)x Marathon Oil Corporationxi within the Minerals Industryxii Monitoring and "The Integrity Helpline is an additional resource "Mining Companies should develop a Compliance for anonymous advice or discussion on workplace Company Policy for human rights." Framework behavior and ethics." "The company shall appoint a director for (Continued) "HE&S performances will be measured and com- human rights...this director will implement all municated through compliance reviews and audits internal human rights reviews and training conducted periodically." programs." "Employees must immediately report any sus- Companies "must recognise that if the code pected illegal or unethical conduct connected with of human rights conduct is to be complied the business of Marathon Oil Corporation or its with then a regular and independent external subsidiaries." review of the policy as practised must be "In 2001, established a Business Integrity Office implemented." which is responsible for developing and imple- menting the Ethics Program for Marathon and its subsidiaries." 102 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 103 Organisation for Economic Co-operation and Development (OECD), Guidelines for Norsk Hydro ASAxiii Occidental Petroleum Corporationxiv Odebrecht S.A.xv Multinational Enterprisesxvi "Continuously working on improv- "Every employee should report any viola- ing our monitoring and reporting of tion or suspected violation of the Code of social performance, including Business Conduct to the appropriate developing framework and mea- supervisor or department head, who will suring compliance. Human rights report the information to the appropriate and labor practices will be impor- Compliance Officer. Alternatively, an tant topics in future reporting employee may report the matter directly processes." to the Chief Compliance Officer or any member of the Corporate Compliance Committee." "No employee will be retaliated against for making a good faith report of a sus- pected violation of the Code of Business Conduct." "A toll-free compliance line is available to employees. Employees are able to report anonymously if they choose to." "Policy includes a management system designed to maintain compliance with all applicable laws and regulations." "Will utilize sound maintenance and work practices, safety-conscious design, employee training, quality control and assurance processes, incident investiga- tions and corrective measures designed to prevent health, environment and safety incidents. Should an accident occur, Occidental will respond promptly, appropriately and professionally to mini- mize the impact and to investigate thor- oughly to prevent similar such accidents in the future." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 103 CRS_Annex A 3/3/04 12:12 Page 104 Regional Association of Oil Social Accountability and Natural Gas Companies in Latin International, America and the Caribbean (ARPEL)xvii Shell International Limitedxviii SA8000xix Monitoring and "Member companies will contribute to the cre- "More than 1,500 responses were received via "The company shall appoint a senior man- Compliance ation and strengthening of an environmental "Tell Shell" our web-based mail and discussion agement representative responsible for the Framework awareness by means of education and training forum, a significant increase on previous years. health and safety of all personnel, and (Continued) of their workers and those of their contractors Human rights, senior management salaries and accountable for the implementation of this on their environmental policies and manage- renewable energy were the three most popular standard." ment systems, as well as on the corresponding topics. Submissions are categorized and results "The company shall establish systems to specific programs and practices." are published; selected submissions (both detect, avoid, or respond to potential threats "Collects annual statistics on safety incidents of favorable and not) are also published." to the health and safety of all personnel." its member companies since 1997." "In 2002, developed a diversity and inclusive- ness indicator. This uses the Shell People Survey to measure the extent to which staff believe that their views and backgrounds are respected, their leaders support Shell's Diversity and Inclusiveness Standard and they are being treated fairly at work." 104 O I L A N D G A S S E C T O R CRS_Annex A 3/3/04 12:12 Page 105 South African Petroleum Industry Association (SAPIA)xx Statoil ASAxxi TOTAL S.A.xxii International Standards "We carry out ethical audits or "The Ethics Committee, UN Norms: Transnational corporations "shall be subject to periodic moni- our own operations" which reports to the Chief toring and verification by UN, other international, and national mecha- "Will be publishing a separate Executive Officer, is in nisms, already in existence or yet to be created, regarding application of sustainability report on a regular charge of all questions of the Norms. This monitoring shall be transparent, independent, and take basis." ethics concerning the into account input from stakeholders (including NGOs) and as a result of "Plans to operate an ethics help Group's activities." complaints of violations of these Norms. Further, transnational corpora- line on a trial basis for six months "The Ethics Committee can tions and other business enterprises shall conduct periodic evaluations from the autumn of 2002. This will be approached directly by concerning the impact of their own activities on human rights under these allow any employee to seek assis- any employee facing an ethi- Norms." tance or report concerns on a cal problem of a professional UN Norms: "As an initial step towards implementing these Norms, each confidential basis by phone, fax, nature. All approaches are transnational corporation or other business enterprise shall adopt, dis- e-mail or in person. The results of confidential and made out- seminate and implement internal rules of operation in compliance with the the trial will be evaluated to deter- side the normal chain of Norms." mine whether or not the help line management." IFC: Annual monitoring reports submitted to IFC by project sponsors must should continue on a permanent "Appropriate safety, environ- reference any instances of non-compliance with the Harmful Child Labor basis." ment and quality manage- and Forced Labor policies. "Introduced in 2003 the ment systems for each Assurance letter process business activity will whereby 100 managers sent a undergo regular evaluation personal report to the CEO where involving measurement of they confirmed that their opera- performance, setting mile- tions were in accordance with the stones, formulating relevant Corporate Guidelines." action plans, and instituting suitable control procedures. Implementation of manage- ment systems will be based on exchanges of information, performance reviews, con- sultation and training." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 105 CRS_Annex A 3/3/04 12:12 Page 106 Endnotes i Analysis based on: Introductory Checklist. and Safety; Values, Performance Principles, Environment; and 2001 Sustainable Global ii Performance Report. AIP is an industry organization composed of companies engaged in the refining, marketing and/or distribution of petroleum products in Australia. The principles cited are not binding on xiiPrepared by Australian NGOs, the Principles paper is not a code of conduct and is not to be AIP's members. Analysis based on: Environment Policy Statement; and Beyond Compliance. adopted or used as such. It is designed to provide a set of principles from which groups and iii organizations may draw guidance and which they may use as a basis for developing agree- Analysis based on: What We Stand For; Environmental and Social Objectives; ments on mining issues. Environmental and Social Review 2002; Beyond Petroleum: Business and the Environment in the 21st Century; Business Ethics; and Business Policy Commitments and Expectations: xiiiAnalysis based on : Environmental Policy; Health, Safety and Environment 2002; and Social Ethical Conduct; Employees; Relationships; Health Safety Environment; Control and Finance. Responsibility--Principles and Activities. iv The reader should note that the full text of the company's code or policy on this particular xiv Analysis based on: Code of Business Conduct; Health, Environment & Safety Principles; issues has not been stated in full. This is due to space restrictions that a project of this kind Good Neighbor Principles; Site Restoration Policy; and 2001 Report on Compliance with dictates. The reader may contact the company directly for any clarification. Sullivan Principles. v The Caux Round Table is a global network of senior business leaders "committed to princi- xv Analysis based on: Code of Ethics; 2002 Annual Report; Involuntary Resettlement pled business leadership, who believe that business has a crucial role in developing and pro- Guidelines; Guidelines On The Protection Of Cultural Properties; Indigenous Peoples moting equitable solutions to key global issues." The Principles for Business "seek to express Guidelines; Social Responsibility Principles; and Social Responsibility 2002. a worldwide standard for ethical and responsible corporate behavior and is offered as a foun- xvi Though not a binding Code of Conduct, the OECD countries "jointly recommend to multi- dation for dialogue and action by business and leaders worldwide." Analysis based on: national enterprises operating in or from their territories the observance of the Guidelines." Employees and Communities and General Principles. Analysis based on: Employment and Industrial Relations; and Commentary. vi Analysis based on: The ChevronTexaco Way; Business Conduct and Ethics Code; xvii ARPEL, or Associacion Regional de Empresas de Petroleo y Gas Natural en Latinoamerica Environment; Social Responsibility; Angola Fact Sheet; Global Climate Change Policy el Caribe, is an industry organization and forum formed by more than twenty-five companies Statement; and ChevronTexaco Corporation's website at www..chevrontexaco.com. in the Latin American and Caribbean oil and natural gas upstream and downstream sectors. vii Analysis based on: Code of Practice, Pursuing Sustainable Value, Our Principles; transla- Analysis based on: Annual Report 2002; Code of Environmental Conduct; and Philosophy. tion of Addendum to the Code of Practice approved on July 31st 2003 by Eni's Board of xviiiAnalysis based on: Statement of General Business Principles; The Shell Report 2002; The Directors, Eni's Way--2002, Pursuing Sustainable Value, Our Principles; Annual Report 2002; Seven Principles That Guide Us; and Issues: Water Use. Agreement on Transnational Industrial Relations & CSR; translation of the Energy & Petrol xix Developed by he Council on Economic Priorities Accreditation Agency, Social National Labor Collective Contract CCNL; Protocol on Industrial Relations; Community Accountability 8000 (SA8000) is "a system which defines a set of auditable standards and an Relations Principles; Health Safety & Environment 2002 Report, Health Safety & Environment independent auditing process for the protection of workers' rights." 2001 Report; and Eni S.p.A.'s website at www.agip.it/english. xx SAPIA "represent[s] the common interests of the petroleum refining and marketing indus- viiiAnalysis based on: Standards of Business Conduct; Actions & Results; Environmental try in South Africa; and promote[s] understanding of the industry's contribution to economic Policy; and 2002 Corporate Citizenship Report. and social progress with all stakeholders." Analysis based on: Social Responsibility; and 2002 ix Analysis based on: Annual Report 2001; Health Safety and Environment Report 2000; and Annual Report. Collective Bargaining Agreement. xxi Analysis based on: Our Objectives; Our Management System; Measures; Corporate x Launched in 1991, the International Chamber of Commerce's Business Charter for Standards; Health, Safety and Environment; Annual Report and Accounts 2002; Our values: Sustainable Development is a voluntary business initiative and was created as a tool to help Social Responsibility; Sustainable Development; and Sustainability Report 2003. companies address environmental issues that had emerged in the 1980s and early 1990s. xxii Analysis based on: Code of Conduct; 2002 Social Responsibility Report; HSEQ Charter; Analysis based on: Business in Society: Making a Positive and Responsible Contribution; and Enhancing Safety; Future of Energy; Our Goals; Environmental Stewardship; Sustainable Business Charter for Sustainable Development. Development; and Assessment Tools. xi Analysis based on: Code of Conduct; Our Values; Reporting Unethical Conduct Policy; and Ethics and Integrity; Commitment to Integrity: Code of Business Ethics; Health, Environment 106 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 107 B A N N E X Oil and Gas Sector Environmental Standards Companies/Organizations: Issues Examined: American Petroleum Institute (API) General Policy Statement on Environmental, Health, and Safety Australian Institute of Petroleum (AIP) Issues/Environmental Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 108-113 BP p.l.c. Environmental Management Systems (EMS) Standards . . . . . . . . . . . . . . . . . . 114-119 ChevronTexaco Corporation Coalition for Environmentally Responsible Economies (CERES) Principles Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120-125 Eni S.p. A Exxon Mobil Corporation Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126-131 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126-131 Marathon Oil Corporation Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132-137 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industry Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138-143 Norsk Hydro ASA Occidental Petroleum Corporation Pollution Control and Hazardous Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . 144-149 Odebrecht S.A. Organisation for Economic Co-operation and Development (OECD) Guidelines for Waste Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144-149 Multinational Enterprises Regional Association of Oil and Natural Gas Companies in Latin America and the Caribbean Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150-155 (ARPEL) Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150-155 Shell International Limited Social Accountability International--SA8000 Monitoring and Compliance Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156-161 South African Petroleum Industry Association (SAPIA) Statoil ASA TOTAL S.A. International Standards 107 CRS_Annex B 3/3/04 12:14 Page 108 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. General Policy The members are "dedicated to continuous "AIP member companies in Australia share the "Committed to demonstrating respect for the Statement on efforts to improve the compatibility of our general community concern for conservation of natural environment and work toward our Environmental, Health operations with the environment while eco- the environment, and seek to protect air, water and goals of no accidents, no harm to people and and Safety Issues/ nomically developing energy resources and soil from contamination through their operations. no damage to the environment." Environmental supplying high quality products and services In doing so their aim is to: Management Systems to consumers. We recognize our responsibil- treat with care all materials that may cause ity to work with the public, the government, pollution; and others to develop and to use natural achieve a zero accident goal; resources in an environmentally sound man- maintain open communication with Governments ner while protecting the health and safety of and local communities; and our employees and the public." support market mechanisms for conservation Operates plants and facilities, and handles and wise use of our valuable energy resources." raw materials and products "in a manner that protects the environment, and the safety and health of our employees and the public." Makes "safety, health and environmental considerations a priority in our planning, and development of new products and processes." "Extends knowledge by conducting or sup- porting research on the safety, health and environmental effects of our raw materials, products, processes and waste materials." 108 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 109 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation Policy is to "protect the safety "We will promptly and responsibly "Committed to contributing to the devel- "Conducts its business in a manner and health of the people and the correct conditions we have caused opment and welfare of the communities that: environment." that endanger health, safety or the where it operates by pursuing the protects the safety of employees, Consistent with its Corporate values environment. To the extent feasible, objective of ensuring the safety and others involved in its operations, and its goal to be recognized and we will redress injuries we have health of its employees, external collab- customers, and the public; and admired for safety, health, and envi- caused to persons or damage we orators, customers and local communi- is compatible with the balanced ronmental excellence, conducts have caused to the environment and ties that may be affected by Eni's environmental and economic needs business worldwide in a socially will restore the environment." activities and to reducing the environ- of the communities in which it responsible and ethical manner. "We will inform, in a timely manner, mental impact of such activities." operates." "Works ethically and constructively everyone who may be affected by "Contributes to the promotion of research Strives "to prevent all accidents, to influence proposed laws and regu- conditions caused by our company and development aimed at protecting the injuries, and occupational illnesses lations, and debate on emerging that might endanger health, safety or environment and natural resources." through the active participation of issues." the environment. We will regularly "Industrial activities shall be performed every employee." "Conserves company and natural seek advice and counsel through dia- in full accordance with all the applica- "Committed to continuous efforts to resources by continually improving logue with persons in communities ble laws on prevention and protection." identify and eliminate or manage safety its processes and measuring near our facilities. We will not take "Operations shall be carried out accord- risks associated with its activities." progress." any action against employees for ing to advanced criteria for the protec- "Committed to continuous efforts to "Assesses and manages environ- reporting dangerous incidents or tion of the environment and energy improve environmental performance mental liabilities prior to any property conditions to management or to efficiency, with the aim of creating bet- throughout its operations." transaction." appropriate authorities." ter working conditions and protecting "Complies with all applicable environ- the health and safety of employees." mental laws and regulations and "Research and technological develop- applies responsible standards where ment must be aimed in particular at pro- laws and regulations do not exist; moting the use of products and encourage concern and respect for processes that are as environmentally the environment, emphasize every friendly as possible and characterized employee's responsibility in environ- by and ever greater attention being paid mental performance, and ensure to the safety and health of employees." appropriate operating practices and "Employees,withintheirareasofresponsibil- training; work with government and ity,participateintheprocessofriskpreven- industry groups to foster timely devel- tionandenvironmentalandhealthprotection opment of effective environmental andsafety,thatisintheirowninterestandin laws and regulations based on sound theinterestalsoofthirdparties." science and considering risks, costs, "Guarantees the highest standards of and benefits, including effects on health and safety for its employees and energy and product supply." the communities in all the areas of the world where it operates." "Will pay the utmost attention to the environment and ecosystem affected by its business activities and draws inspi- ration from the goals contained in inter- national conventions signed by Italy on sustainable development." E N V I R O N M E N T A L S T A N D A R D S 109 CRS_Annex B 3/3/04 12:14 Page 110 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation General Policy "Health and Safety are fundamental values "To recognise environmental management as "Environmental protection is the right thing Statement on and therefore adopts a practice based on among the highest corporate priorities and as a to do, and part of our business strategy." Environmental, Health prevention." key determinant to sustainable development; to "Recognizes the need to explore, produce, and Safety Issues/ "Assumes a pro-active role with a view to establish policies, programmes and practices for transport and manufacture energy products Environmental minimising the environmental impact of its conducting operations in an environmentally in an environmentally responsible manner Management Systems activities, and therefore applies the best sound manner." with the highest regard for the safety and (Continued) available practices and technologies." "To foster openness and dialogue with employees health of workforce and the communities in "Seriously concerned about the impact of its and the public, anticipating and responding to which it operates." activities, products and services on the their concerns about the potential hazards and Community." impacts of operations, products, wastes or ser- "Committed to continuously improving what it vices, including those of transboundary or global does, namely the continuous improvement of significance." the quality of its procedures, products and "To assess environmental impacts before starting services, of its environmental impact, and the a new activity or project and before decommis- security of people and properties, in order to sioning a facility or leaving a site." contribute towards sustainable development. Therefore, assumes its responsibilities: to satisfy the client's requires providing products and services which meet their needs to maintain a reliable after sales ser- vice to consolidate Galp brand; to comply with environmental, safety and health regulations which apply to its activities; to introduce Environmental, Quality and Safety goals in the business programmes, measuring and evaluating the achieved results to inform, in a transparent and responsible way, the involved parties (shareholders, employees, clients, suppliers, authorities, communities) about its performance inher- ent to Environment, Quality and Health; and to apply the requirements of environmental management, quality and safety settled up in international rules." 110 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 111 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "All companies should operate "Commitment to continuously "Protection of the health and safety of Basic principle underlying all entre- according to the precautionary prin- reduce environmental impacts and employees and the environment is a high preneurial actions "is serving the ciple, which provides that in the risks of our activities, contribute to priority and should be considered in Client with an emphasis on quality, event of doubt about the potential the development of sustainable every aspect of the operations." productivity and creativity while car- impacts of an action or operation, the energy systems [and to] proactively "Makes health, safety and environmental ing responsibly for society, the com- company should avoid taking that meet requirements in legislation and protection an integral part of designing, munity and environment and fully course of action." regulations" manufacturing, marketing, distributing, respecting the laws and regulations using, recycling and disposing of its of each country and region in which products." they are present." "Takes a firm stance on the environ- ment in all our ventures, implement- ing management systems that anticipate environmental impacts, reutilizing natural resources and fos- tering the best conditions for the preservation and reproduction of life on this planet." "Always caring responsibly for the environment in all their business ven- tures." All entrepreneurial actions must "take into account safety concerns, their own health, the health of other Members, and environmental preser- vation, while scrupulously observing local legislation." E N V I R O N M E N T A L S T A N D A R D S 111 CRS_Annex B 3/3/04 12:14 Page 112 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited General Policy "Enterprises should, within the framework of "All plans, programs and actions that are devel- "To conduct business as responsible corpo- Statement on laws, regulations and administrative practices oped by the oil industry must, at all stages, be rate members of society, to observe the laws Environmental, Health in the countries in which they operate, and in guided by the best available environmental pro- of the countries in which they operate, to and Safety Issues/ consideration of relevant international agree- tection practices, including the development of express support for fundamental human Environmental ments, principles, objectives, and standards, appropriate Contingency Plans and restoration rights in line with the legitimate role of busi- Management Systems take due account of the need to protect the of the environment to an acceptable condition if ness and to give proper regard to health, (Continued) environment, public health and safety, and gen- it has been harmed by them." safety and the environment consistent with erally to conduct their activities in a manner their commitment to contribute to sustainable contributing to the wider goal of sustainable development." development." "Consistent with their commitment to con- "Consistent with the scientific and technical tribute to sustainable development, Shell understanding of the risks, where there are companies have a systematic approach to threats of serious damage to the environment, health, safety and environmental manage- taking also into account human health and ment in order to achieve continuous perfor- safety, not use the lack of full scientific mance improvement." certainty as a reason for postponing cost- effective measures to prevent or minimise such damage." 112 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 113 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "The company, bearing in "Objectives in health, safety As a responsible industrial International Finance Corporation (IFC) mind the prevailing knowl- and environment (HSE): zero group, "aim is to contribute to Pollution Prevention and Abatement edge of the industry and harm to people or the environ- an efficient and properly Handbook (Handbook), which went into of any specific hazards, ment; zero accidents or losses. managed utilization of all official use on July 1, 1998. shall provide a safe and A high performance in HSE has sources of energy and prod- UN Norms: Transnational corporations healthy working environ- a value in itself. It is also a pre- ucts it deals in." "shall carry out their activities in ment and shall take ade- requisite for positive financial "Every employee is responsi- accordance with national laws, regula- quate steps to prevent results and a good reputation. ble for ensuring that his or tions, administrative practices, and accidents and injury to We will contribute to sustain- her involvement in the policies relating to the preservation of health arising out of, asso- able development. We apply Group's activities is carried the environment of the countries in ciated with or occurring in the same attitudes toward HSE out in full compliance with which they operate as well as in accor- the course of work, by wherever we do business." the Group's rules concerning dance with relevant international minimizing, so far as is health, safety and environ- agreements, principles, objectives, reasonably practicable, mental protection." responsibilities, and standards with the causes of hazards "Considers safety in regard regard to the environment as well as inherent in the working to operations, human health, human rights, public health and safety, environment." respect for the environment bioethics, and the precautionary princi- and customer satisfaction as ple; and shall generally conduct their paramount priorities." activities in a manner contributing "No development or product to the wider goal of sustainable launch may be undertaken development." without prior assessment of risks to safety, health and the environment over the life the project or product." E N V I R O N M E N T A L S T A N D A R D S 113 CRS_Annex B 3/3/04 12:14 Page 114 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Environmental "All companies base their daily operations and "Addressing the full set of HSE Expectations Management Systems work programs on some form of management sys- is mandatory for every activity. The rele- (EMS) Standards tem which ensures there is an overall structure vance, application, and degree of implemen- and discipline to their ways of conducting busi- tation . . . will be a function of the operational ness. These principles are endorsed by top man- risk profile, the local and national regulatory agement and progress on down through the ranks requirements and any voluntary HSE man- to become a part of even the smallest or most agement programmes. " minor operation. They are fundamental to issues of "Managers are accountable for putting in safety and environmental care." place appropriate documented systems and processes for each Expectation, for ensuring continuous progress towards BP's HSE goals and targets and for confirming that these are effective via the HSE Assurance process." 114 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 115 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation Strives for "world-class performance "We will strive to minimize the envi- A model management system "identi- "Governance of environmental mat- by institutionalizing a rigorous system ronmental, health and safety risks to fies the fundamental requisites neces- ters is overseen by Corporate direc- (Operational Excellence Management our employees and the communities sary to ensure consistency in HSE tors and our comprehensive System) for managing safety, health in which we operate through safe management across the different busi- Operations Integrity Management and environmental affairs." technologies, facilities and operating ness areas, regardless of the type of System (OIMS) provides the frame- Assesses and manages risks to procedures, and by being prepared activity and the geopolitical contexts in work for our top-notch environmental employees, contractors, the public for emergencies." which they operate. The system aims to management system that helps pre- and the environment from its opera- encourage continuous improvement vent all types of incidents." tions and products. and is therefore based on a cycle that OIIMS ensures that environmental Through its Operational Excellence includes planning, implementation, con- considerations are addressed in all Management System, applies a "sys- trol and corrective actions, and man- operations. tematic and measurable approach to agement review." "OIMS has become a respected reach world-class operating perfor- "The certification of management sys- benchmark approach for incident pre- mance in safety, environmental pro- tems and operating units, according to vention. Lloyd's Register of Quality tection, health, reliability and the most advanced standards, was con- Assurance attests that OIMS meets efficiency." tinued in 2002. The certification is the intent and requirements of ISO All employees are "held accountable almost complete in the production sites 14001 (the recognized international for results against aggressive envi- and operating units more exposed to standard for environmental manage- ronmental performance targets." HSE risks." ment systems)." "Prevention is a first priority, but be References the following while compil- Company "built into OIMS a culture of prepared for any emergency and ing its in-house Exploration & continuous improvement to make our mitigate any incident quickly and Production HSE manuals: environmental protection programs effectively." ISO 14001 (1996)--Environmental even stronger. Currently strengthen- Management Systems: requirements ing systems to further integrate envi- EMAS Regulations (1996) ronmental planning into long-range ISO 9000--(Vision 2000) Quality business decision-making." Management Policy is to undertake appropriate OHSAS 18001 (1999)--Occupational reviews and evaluations of its opera- Health and Safety Management tions to measure progress and to Systems; specifications ensure compliance with its policies. SA8000--Social Accountability E&P Forum (1994)--Guidelines for the Development and Application of Health, Safety and Environmental Management Systems OGP (2000)--Strategic Health Management: Principles and Guidelines for the Oil & Gas Industry E N V I R O N M E N T A L S T A N D A R D S 115 CRS_Annex B 3/3/04 12:14 Page 116 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Environmental "The Environment, Quality and Safety "To integrate these policies, programmes and "Health, Environment & Safety (HES) Management Systems Management System is the means of sup- practices fully into each business as an essential Management Committee, which is comprised (EMS) Standards porting the implementation of the element of management in all its functions." of officers of Marathon, is charged with (Continued) Environment, Quality, Safety and Health pol- reviewing its overall performance with vari- icy, always regulated by the principle of con- ous environmental compliance programs." tinuous improvement." "Formed an Emergency Management Team, "Implementation of these systems has the composed of senior management, which will objective of ensuring that all the activities of oversee the response to any major emer- the company fit well with its aim of contribut- gency environmental incident involving ing towards sustained development, which Marathon or any of its properties." involves ensuring the quality of the products and services supplied, the quality of the inter- nal functioning of the Company, the remuner- ation of the shareholders, the safety and health of its co-workers and of the installa- tions of the company, as well as respect for the environment." Implemented management systems are at "different stages of development [and numer- ous] business areas being certified by ISO 9000" 116 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 117 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "Companies should agree to best "Will enhance our environmental "Each segment must establish an HES practice targets being defined not by management systems using ISO program that achieves a consistent stan- companies, but by independent com- 14001 as a guideline and integrate dard of care worldwide for people and mittees comprising scientists, other environmental objectives and targets the environment." experts (eg social scientists) Non- in business planning" "Each HES program must, at a minimum, Governmental Organisations (NGOs) include a management system designed community representatives, and com- to maintain compliance with all applica- pany representatives." ble health, safety and environmental laws and regulations." Evaluation and Risk Management includes: identify and assess HES hazards/risks and their possible effects; establish hazard/risk screening criteria; establish HES performance criteria; and implement hazard/risk reduction measures. E N V I R O N M E N T A L S T A N D A R D S 117 CRS_Annex B 3/3/04 12:14 Page 118 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Environmental "Establish and maintain a system of environ- "Member Companies will contribute to the cre- "HSE management systems are in place and Management Systems mental management appropriate to the enter- ation and strengthening of an environmental our programme to certify major installations (EMS) Standards prise, including: awareness by means of education and training to the ISO 14001 standard is virtually com- (Continued) collection and evaluation of adequate and of their workers and those of their contractors plete. The challenge now is to implement timely information regarding the environmen- on their environmental policies and manage- such systems in all the new acquisitions. We tal, health, and safety impacts of their ment systems, as well as on the corresponding expect to complete this process by the end of activities; specific programs and practices." 2005, except for Pennzoil-Quaker State establishment of measurable objectives and, "Continuing the efforts to support our members Company where a plan will be finalised in where appropriate, targets for improved envi- in improving their occupational health and 2003." ronmental performance, including periodi- safety performance and in integrating their HSE cally reviewing the continuing relevance of management systems, the ARPEL Occupational these objectives; and Health and Safety Working Group is working regular monitoring and verification of with Canadian consultants in the development progress toward environmental, health, and of tools to efficiently accomplish these objec- safety objectives or targets." tives. Activities include the development of technical documentation and software to assist ARPEL Member Companies on issues such as: managing contractors, incidents' classification, development of homogeneous risks' work groups and proactive indicators." 118 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 119 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "The company shall establish sys- "In 2002, governing system for "Appropriate safety, environ- IFC Environmental Guidelines for Health tems to detect, avoid or respond to overall management and con- ment and quality manage- & Safety: An Occupational Health and potential threats to the health and trol was certified to the interna- ment systems for each Safety Management System (OHSMS) safety of all personnel." tional ISO 9001 standard." business activity will undergo shall be established, operated and "Top management shall define the Ambition that, by the end of regular evaluation involving maintained for work associated with company's policy for social 2004, "the management system measurement of perfor- IFC projects. The OHSMS should be accountability and labour condi- (quality system) of the Group mance, setting milestones, designed such that certification may be tions to ensure that it: and central operational units formulating relevant action obtained. The comprehensiveness of includes a commitment to will be certified in accordance plans, and instituting suitable the system depends on the nature and conform to all requirements of with ISO 9001:2000 `Quality control procedures." scale of the project and the magnitude this standard; management systems' and/or of risks involved. The system may be includes a commitment to com- ISO 14001:1996 `Environmental based on OHSAS 18001, ILO-OHS 2001, ply with national and other management systems.'" or equivalent internationally recognized applicable law, other require- List of Statoil units already cer- standard. ments to which the company tified according to ISO 9001 subscribes and to respect the and/or 14001 lies on the Statoil international instruments and internet (HSE, Our Management their interpretation (as listed in System). Section II) includes a commitment to con- tinual improvement; is effectively documented, implemented, maintained, com- municated and is accessible in a comprehensible form to all per- sonnel, including, directors, executives, management, super- visors, and staff, whether directly employed, contracted or otherwise representing the company; and is publicly available." "Top management shall periodi- cally review the adequacy, suit- ability, and continuing effectiveness of the company's policy, proce- dures and performance results vis-a-vis the requirements of this standard and other requirements to which the company subscribes. System amendments and improvements shall be imple- mented where appropriate." E N V I R O N M E N T A L S T A N D A R D S 119 CRS_Annex B 3/3/04 12:14 Page 120 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Health and Safety "Makes safety, health and environmental Company goal of "no accidents and no harm considerations a priority in our planning, and to people." our development of new products and Guiding Principles of Health and Safetyii processes." "Will continue to drive down the environ- "Advises promptly, appropriate officials, mental and health impact of our operations employees, customers and the public of by reducing waste, emissions and dis- information on significant industry-related charges and by using energy efficiently." safety, heath and environmental hazards, Recognize that "safe operations depend not and to recommend protective measures." only of technically sound plant and equip- ment but also on competent people and an active HSE culture, and that no activity is so important that it cannot be done safely." "Will assess, manage and communicate the hazards associated with BP's products." "Comply fully with all legal requirements and meet or exceed our HSE Expectations wher- ever we operate in the world." "Will regularly identify the hazards and assess the risks associated with our activities." "New facilities and modifications to existing facilities will be designed, procured, con- structed and commissioned to enable safe, secure, healthy and environmentally sound performance throughout their operational life by using recognized standards, proce- dures and management systems." Introduced explicit improvement objectives for safety in the performance contracts of all our executives in order to ensure commit- ment at the highest levels in the company. Strategy on Healthiii 120 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 121 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Believes that "all accidents are pre- "We will strive to minimize the environmental, "When carrying out its activities, its aim is to guarantee the health and ventable and a zero-incidents goal is health and safety risks to our employees and the safety of employees, local communities, contractors and customers on attainable." communities in which we operate through safe the basis of the following principles: "When it comes to achieving world- technologies, facilities and operating procedures, the principles, standards and solutions adopted must follow best inter- class health and safety performance, and by being prepared for emergencies." national practices in terms of HSE and public safety; there's no room for compromise." operational management must be based on state-of-the-art criteria and Vision and values statement, "calls on the objective must be pursued of improving health and safety condi- every employee and contractor working tions according to practices and procedures which are also agreed for the company to strive for incident-free with trade unions; operations, and to manage risks to pre- personnel training and the exchange of experience and information must vent injuries, illnesses and accidents." be considered fundamental tools in order to achieve HSE objectives, with "Design, construct, operate, maintain a view to improving continuously prevention and protection standards; and ultimately decommission assets to employees, when carrying out their duties, must be actively involved in prevent injury, illness and incidents." the process of HSE safeguards; this, in the interests of their colleagues "Ensure that employees and contractors and the public at large, as well as in their own interests; and understand their safety, health and envi- employees, trade unions, authorities and the general public must be ronmental responsibilities." informed periodically about the results achieved in terms of environ- "Manage potential risks of our products mental protection, health and safety." with everyone involved throughout the "The concept of health care has been expanded to include that of "well- products' life cycles." being at work", both in a physical and psychological sense. Such well- "Invested in quality medical care, preven- being is measurable not only through injury and work-related illness tive medicine and health awareness pro- statistics but also through work quality." grams for its communities and employees." "In all activities, the management of occupational safety, prevention and "Committed to providing a safe and health care is performed through: healthy workplace for employees. Maintains reasonable safety rules, prac- identification, assessment and reduction of all work-related risks; tices and procedures with firm and fair development and implementation of performance-monitoring proce- enforcement and communicates these dures; and rules, practices and procedures to all timely planning of actions aimed at dealing with possible emergencies." employees. At the same time, expects "Committed to the improvement of workplace safety through prevention employees to be efficient and productive and protection programs that favor a progressive reduction of injuries in performing their job assignments." among employees and contracts workers." "Corporate Policy on Health, "The process of improving working conditions has been ever more char- Environment and Safety commits to acterized over time by a steady and profitable relationship with the compliance with the spirit and letter of unions, as the numerous Union contracts testify." Several important ini- all environmental, health and safety tiatives include: agreements as to the role of the RLS (Health and Safety laws and regulations, regardless of the Workers' Representative) and training programmes and creation of the degree of enforcement." European Observatory for workers' health and safety within the frame- In accordance with the Sullivan work of the European Works Council. Principles: company "provides a safe and healthy workplace; protects human health and the environment; and pro- motes sustainable development." E N V I R O N M E N T A L S T A N D A R D S 121 CRS_Annex B 3/3/04 12:14 Page 122 International Chamber of Exxon Mobil Corporation Galp Energia, SGPS, S.A. Commerce (ICC) Marathon Oil Corporation Health and Safety Policy to: "Considers that Health "HES organization has the (Continued) identify and evaluate health risks related to its operations and Safety are fundamental responsibility to ensure that potentially affect its employees, contractors or the values and therefore that operating organiza- public; adopts a practice based on tions maintain environ- implement programs and appropriate protective measures prevention." mental compliance to control such risks, Assumes the responsibility systems that are in accor- design and maintain facilities, establish management sys- "to protect the health and dance with applicable tems, provide training and conduct operations in a manner safety of its employees and laws and regulations." that safeguards people and property; various persons involved in "Committed to providing a communicate to potentially affected individuals or organi- its activities" and "to apply safe and healthy work- zations and the scientific community, knowledge about the best practices and place." health risks gained from its health programs and related strategies of continuous "Strives to achieve goal studies; prevention of risks inherent of no accidents, injuries, determine the medical fitness of employees to do their to safety, health and envi- unsafe work practices, work without undue risk to themselves or others; ronment." or unsafe conditions provide or arrange for medical services necessary for the "In the year 2000, some 158 throughout its operations." treatment of employee occupational illness or injuries and actions of the Strategic for the handling of medical emergencies; Safety Plan were concluded, comply with all applicable laws and regulations, and apply the latter having been responsible standards where laws and regulations do not exist; defined in 1999 on the basis work with government agencies and others to develop of safety inspections carried responsible laws, regulations, and standards based on out at the installations, the sound science and consideration of risk; principal purpose of which conduct and support research to extend knowledge about was the adaptation of the the health effects of its operations, promptly applying sig- installations to the interna- nificant findings and, as appropriate, sharing them with tional references on safety employees, contractors, government agencies, and others management and the new who might be affected; requirements of the Seveso provide voluntary health promotion programs designed to II Directive." enhance employees' well being, productivity, and personal "The implementation in the safety; area of health and safety of respond quickly, effectively, and with care to emergencies or campaigns to monitor the accidents resulting from its operations, cooperating with indus- exposure of workers to try organizations and authorized government agencies; and chemical agents, noise and stress to all employees, contractors, and others working in evaluating illumination con- its behalf their responsibility and accountability for safe perfor- ditions and Leggionella in mance on the job and encourage safe behavior off the job. Galp Energia's buildings." "Committed to continuous efforts to identify and eliminate or manage safety risks associated with its activities." "Programs should supplement, but not interfere with, the responsibility of employees for their own health care or their relationship with personal physicians." 122 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 123 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "A good working environment and "HES culture is integrated into the busi- "HSE procedures are integrated into measures to safeguard employee ness management systems. For every one work program." health and safety are needed to employee and manager, attainment of Integrated Workplace HSE Policy reach our business targets." safety performance goals and objectives mentioned in annual report, but not "Improving safety will remain a major is as important as achieving other busi- available through the web. challenge as we integrate new units. ness goals. Staff and managers continu- We know from experience that ally refine the tools used to achieve recently integrated operations superior performance." achieve a standard of safety, on par "Committed to providing each employee with the average for the company, with a safe and healthful work environ- after two or three years. For 2003, ment. All employees and contractors the target is for a further 20% must abide by all safety rules and prac- improvement." tices, assume responsibility for taking the necessary precautions to protect themselves and co-workers and immedi- ately report accidents and unsafe prac- tices or conditions to designated employees." "Will utilize sound maintenance and work practices, safety-conscious design, employee training, quality control and assurance processes, incident investiga- tions and corrective measures designed to prevent health, environment and safety incidents." Should an accident occur, the company will "respond promptly, appropriately and professionally to minimize the impact and to investigate thoroughly to prevent similar such accidents in the future." E N V I R O N M E N T A L S T A N D A R D S 123 CRS_Annex B 3/3/04 12:14 Page 124 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Health and Safety "Provide adequate education and training to "Developed software and technical guidelines "Shell companies have a systematic (Continued) employees in environmental health and safety to assist its member companies in better approach to health, safety and environmental matters, including the handling of hazardous addressing their occupational health and safety management in order to achieve continuous materials and the prevention of environmental management and operational practices. These performance improvement." accidents, as well as more general environmen- guidelines are utilized as a reference by ARPEL Manages these matters "as any other critical tal management areas, such as environmental member companies to develop their internal business activity, set targets for improve- impact assessment procedures, public rela- procedures and protocols." ment, and measure, appraise and report per- tions, and environmental technologies." formance." "In the short-term, aims to continuously reduce the number of fatalities. Long-term target is zero" Reached target of "2.6 cases [of injury] per million hours worked.... set a long-term tar- get to reduce this key indicator to 2.0 cases per million hours worked in 2007." In 2002, developed a series of Minimum Health Management Standards that "cover areas such as health risk assessment... health incident reporting and investigation, and human factors engineering in new projects." 124 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 125 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "The company, bearing in "Absolute safety in oil and gas "Considers safety in IFC Environmental Guidelines for Health & the mind the prevailing operations is essential on both regard to operations, Safety: The employer is responsible for plan- knowledge of the industry humanitarian and commercial human health, respect ning, implementing and monitoring programs and of any specific haz- grounds. Believes that high for the environment and and systems required to ensure OHS on its ards, shall provide a safe HSE standards have a value in customer satisfaction as premises. Such provisions shall be pro- and healthy working envi- themselves." paramount priorities." active and preventive by identification of haz- ronment and shall take "Under no circumstances will "In March 2002, the ards as well as by evaluation, monitoring and adequate steps to prevent we compromise our HSE stan- Executive Committee control of work-related risks. The employer accidents and injury." dards to achieve cost reduc- set two priority objec- shall provide and maintain workplaces, plant, "The company shall tions. As we see it, there is no tives for industrial equipment, tools, and machinery and orga- ensure that all personnel acceptable trade-off between safety and proposed a nize work so as to eliminate or control haz- receive regular and the two." related action plan. ardous ambient factors at work. The recorded health and "Working to achieve the follow- These objectives are an employer shall provide appropriate occupa- safety training, and that ing objectives within health and updated review of the tional health and safety training for all such training is repeated the working environment: major technological employees. The organization shall, at no cost for new and reassigned zero occupational illnesses risks in each business to the employee, provide adequate personal personnel." work tasks will be stimulating and an annual 15% protective equipment. The employer shall "The company shall pro- and challenging reduction in the fre- record and report occupational injuries and vide, for use by all person- modes of working will pro- quency of work-related illnesses. Contract specifications must nel, clean bathrooms, mote creativity and efficiency incidents over the next include demands for service providers, con- access to potable water, in a good working environ- four years. The action tractors and subcontractors to have or estab- and, if appropriate, sani- ment plan includes tangible lish systems enabling them to meet the tary facilities for food arrangements for working measures aimed at con- occupational health and safety (OHS) storage." hours will be flexible and firming the commitment requirements of the employer. "The company shall encourage the health and of management, IFC General Health and Safety Guidelines: All ensure that, if provided for well-being of our employees." strengthening safety installations shall be designed and operated personnel, dormitory facil- processes and prac- to protect the health and safety of employees "Working to achieve the follow- ities are clean, safe, and tices, and improving and the community, including: air quality, ing objectives within safety: meet the basic needs of communication and noise, confined spaces, general health, gen- the personnel." zero injuries, fires, gas leaks transparency. It also eral safety, drinking water, training, and or material damage; comprises a financial occupational health and safety monitoring. plants will be designed, meet component­a four-year UN Norms: Transnational corporations... shall the technical standards and investment program." provide a safe and healthy working environment be operated in a way which as provided by the relevant international instru- ensures that accidents and ments and national legislation as well as inter- hazardous incidents do not national human rights and humanitarian law. occur; and Numerous ILO Conventions and emergency response organisa- Recommendations, including: 148 (Working tion will be the industry's most Environment (Air Pollution, Noise and professional and efficient." Vibration) Convention), 155 (Occupational Safety and Health Convention), 161 (Occupational Health Services Convention). E N V I R O N M E N T A L S T A N D A R D S 125 CRS_Annex B 3/3/04 12:14 Page 126 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Energy Policy to "economically develop and produce "All petroleum companies practice energy saving Recognizes the "need to reinvent the energy natural resources and to conserve those programs. These include large scale cogeneration industry; to go beyond petroleum. Not by resources by using energy efficiently." plants using waste refinery gases to generate abandoning oil and gas - but by improving power and produce steam used in the refinery the ways in which it is used and produced so itself rather than rely on power from the State grid. that our business is aligned with the long- At the other end of the scale, innovative office term needs of the world." building design and computerised lighting systems "From now on, we will be able to quantify the ensure that best use is made of natural lighting benefits of lower-carbon and energy-saving and that lights will automatically dim or switch off products. We are testing these systems on a when an office or part of a building is not in use." selected range of our products, with the aim of extending this approach to more products in 2004." "Will continue to drive down the environ- mental and health impact of our operations by reducing waste, emissions and dis- charges and by using energy efficiently. We will produce quality products that can be used safely by our customers." Water "In 2002, developed a new approach to global water issues and to sustainable water management, for example many plants are now using reclaimed water." "Phased out the discharge of oil-based drilling muds in 2001, which reduced the amount of synthetic-based fluids discharged to water by 80% over the past two years." 126 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 127 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation "As a result of concerns about global "We will conserve energy and "Operations shall be carried out "Global Energy Management System climate change, committed to a four- improve the energy efficiency of our according to advanced criteria for the (GEMS) has identified opportunities to fold plan of action: internal operations and of the goods protection of the environment and reduce energy use and operating reducing greenhouse-gas emis- and services we sell. We will make energy efficiency." costs at refineries and chemical sions and increasing energy effi- every effort to use environmentally "Operational management must be plants." ciency; safe and sustainable energy based on state-of-the-art criteria in "Uses cogeneration facilities that can investing in research, development sources." terms of environmental protection and supply 2,875 megawatts of electricity and improved technologies; energy efficiency: and reduce carbon dioxide emissions pursuing business opportunities in use natural gas as a bridge toward a by almost seven million tons a year promising innovative energy tech- more sustainable energy system; from what they would otherwise be nologies; and expand technical and economic using conventional electricity supporting flexible and economi- potential of gas supply; and generation." cally sound policies that protect promote end uses with low environ- the environment." mental impact." "Continually improving processes to "We will make sustainable use of "Sustainable management of water minimize pollution and waste." renewable natural resources, such requires attention to potential savings as water, soils and forests. We will in the use and treatment of waste to conserve non-renewable natural reduce concentration of pollutants." resources through efficient use and careful planning." E N V I R O N M E N T A L S T A N D A R D S 127 CRS_Annex B 3/3/04 12:14 Page 128 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Energy (Continued) Assumes the responsibility to "ensure the "To develop, design and operate facilities and right use of energy and resources as well the conduct activities taking into consideration the incorporation of safety and innovative mea- efficient use of energy and materials." sures towards the management of its activi- ties, minimizing the pollution and production of residues in order to enable the sustainabil- ity of the company and the environment of it." "The processing units changes [in Portugal] allowed a reduction in energy consumption, involving a reduction in the global amounts of the refinery atmospheric emissions both in terms of carbon dioxide, and of the pollutants sulphur dioxide, nitrogen dioxides and particles." Water (Continued) 128 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 129 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "Will develop and manage activities "Will conserve energy and improve the which make efficient use of energy energy efficiency of our internal opera- and raw materials." tions through cost effective improve- "Concentrating on hydrogen as ments using technological improvements energy carrier and continuing work in new energy consuming processes." on developing renewable energy sources such as water, wind and wave power." "Companies must recognise and take "Will conserve the use of water in our action to prevent any type of ocean facilities." and/or riverine tailings disposal that is not acceptable. Companies should recognise that mineral deposits must not be developed unless tailings con- tainment is available and acceptable, from safety and other perspectives." E N V I R O N M E N T A L S T A N D A R D S 129 CRS_Annex B 3/3/04 12:14 Page 130 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Energy (Continued) "Continually seek to improve corporate environ- "Efficient exploitation of hydrocarbons, giving "Efficient use of natural resources--for mental performance, by encouraging, where priority to the application of high yield example, energy, land, water--reduces our appropriate, such activities as: development processes, energy conservation, reduction of costs and respects the needs of future gen- and provision of products or services that ... polluting emissions, and product recycling, erations. We constantly look for ways to min- are efficient in their consumption of energy and must lead to a better management of hydrocar- imise their use." natural resources." bon resources, within a policy of natural resources conservation." Water (Continued) "Recognises the growing need for water management systems that focus on recycling and conservation. From our experiences around the world... it is clear that much can be done simply by changing wasteful atti- tudes to water and finding innovative ways to further reduce our impact on water. We are using the learning gained in these areas to address this issue more systematically. In 2001 we began monitoring the use of potable water, surface water and ground water and we will report these data for the first time in 2002." 130 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 131 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "Goal to develop a profitable "Explored a number of business which leads to sus- promising avenues in our tainable energy production and core businesses, such as increased use of clean energy enhanced oil recovery from bearers. The group established mature fields and developing a new business cluster in 2001 very heavy oil and sour gas." to pursue the development of "Investigating wind and pho- such clean bearers. Called new tovoltaic energy, as well as energy, it works primarily on the use of hydrogen for renewables, energy efficiency, energy purposes." carbon dioxide capture and hydrogen." "Goal to conduct its business "The Exploration & IFC Handbook: Extensive Water pollu- without harming the environ- Production business has tion standards. ment." launched a vast program to "On the Norwegian continental improve the quality of its shelf, it aims to eliminate all wastewater discharges by harmful discharges to the sea 25% over five years, in an by 2005." effort to reduce the impact of "The condition of the environ- its activities on the ment around the company's environment." installations is monitored through regular programmes. Environmental monitoring cov- ers both water quality and seabed sediments." E N V I R O N M E N T A L S T A N D A R D S 131 CRS_Annex B 3/3/04 12:14 Page 132 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Biodiversity "Business practices and methods of opera- Supports the work undertaken by individuals tion are being established to help protect and and many organizations in developing a con- preserve important habitats and the organ- sistent approach to identification and desig- isms that depend on them." nation of protected areas. Believes International Union for Conservation of Nature and Natural Resources designations provide the best framework available and encourage the strengthening and understanding of such systems. 132 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 133 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation "Established a long record of protect- "We will safeguard all habitats "Will pay the utmost attention to the "Concerned with helping to sustain ing the marine ecosystem. Seismic affected by our operations and will environment and ecosystem affected by the world's biological diversity. While work has been rescheduled or sus- protect open spaces and wilderness, its business activities and draws inspi- more can and must be done, we have pended to accommodate the whales while preserving biodiversity." ration from the goals contained in inter- a broad array of efforts underway that and nesting sea turtles. The prede- national conventions signed by Italy on are bringing results including: design- cessor companies sponsored the sustainable development." ing, operating, and monitoring the construction of artificial reefs to pro- Reaffirms its commitment to operate impact of our operations to be sensi- mote marine life and benefit local within the framework of the United tive to the needs of species that call fishermen." Nations Universal Declaration of Human our facilities home." Recently released the following Rights, the Fundamental Conventions of statement as part of its participation the International Labour Organisation in the Energy & Biodiversity Initiative (ILO) and the Organisation for Economic (EBI): Co-operation and Development (OECD) "Over the past several years, we Guidelines on Multinational Enterprises, have expanded our understanding with particular reference to the respect of biodiversity conservation con- for natural biodiversities and of the pro- cerns relevant to our business. We tection of the environment. have identified a number of areas where we have the potential to more effectively integrate consid- eration of biodiversity into our processes and projects. We are developing action plans to address high-priority opportunities. In addi- tion to working with the EBI prod- ucts internally, we are also actively promoting industry review and use of the products through our mem- bership in the IPIECA-OGP Biodiversity Working Group. A statement of our plans regarding biodiversity is presently going through internal review as part of our external corporate responsibil- ity report to be published later this year. "iv E N V I R O N M E N T A L S T A N D A R D S 133 CRS_Annex B 3/3/04 12:14 Page 134 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Biodiversity "Support of the Second National Conference (Continued) on the Conservation of Nature." "As in 1999, sponsorship of two projects in partnership with Mitsubishi Motors: The Wild Master project, in partnership with the Institute for the Nature Conservation, ori- ented towards vigilance and prevention actions of fires and environmental aggres- sion, The Sea Master project, oriented towards the safety of beaches, which was developed with the Institute for Assisting Shipwrecked Persons." 134 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 135 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "Operates in areas sometimes vul- Occidental's Elk Hills oil and gas field in nerable to industrial activity. This California is high quality habitat for sev- gives us a special responsibility to eral endangered and threatened help preserve biological diversity in species. Through its Conservation these areas. We will contribute to Management Plan, Occidental has set sustainable industrial activity and aside 7,800 acres to preserve habitat and therefore take consideration of the help promote recovery of these species, impact of our operations on the bio- including the San Joaquin kit fox, the logical diversity of the areas within blunt-nosed leopard lizard and the giant which we operate." kangaroo rat. This project has been cer- tified by the Wildlife Habitat Council. E N V I R O N M E N T A L S T A N D A R D S 135 CRS_Annex B 3/3/04 12:14 Page 136 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Biodiversity "First energy company to establish a (Continued) Biodiversity Standard. It commits all Shell companies to respect protected areas, main- tain ecosystems and contribute to conservation." 136 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 137 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "Participant in EBI together "Maintaining biodiversity is IFC Handbook: The conservation of nat- with three other oil companies essential for the planet's ural habitats, like other measures that and five environmental ecosystems and indispens- protect and enhance the environment, organizations." able for the biosphere and is essential for long-term sustainable Makes a survey of natural the future of humankind." development. IFC therefore supports resources "before starting "Created in 1992, the TOTAL the protection, maintenance, and reha- operations in a new area - Corporate Foundation con- bilitation of natural habitats and their exploration drilling or installing tributes to our commitment to functions in its project financing and pipelines and land-based sustainable development by advisory activities. IFC supports, and plants. Such studies are maintaining marine biodiver- expects project sponsors to apply, a carried out in collaboration with sity and protecting precautionary approach to natural external scientific institutions, ecosystems." resource management to ensure and in dialogue with the author- opportunities for environmentally sus- ities and environmental tainable development. organisations." As part of a private sector project IFC supports natural habitat conservation, improved land use and the mainte- nance of ecological functions. Furthermore, IFC promotes the rehabili- tation of degraded natural habitats. IFC does not support projects that, in IFC's opinion, involve the significant conversion or degradation of critical natural habitats. In deciding whether to support a proj- ect with potential adverse impacts on a natural habitat, IFC takes into account the project sponsor's ability to imple- ment the appropriate conservation and mitigation measures. If there are potential capacity problems with a project sponsor, the project includes a component to build additional capacity for effective environmental planning and management. E N V I R O N M E N T A L S T A N D A R D S 137 CRS_Annex B 3/3/04 12:14 Page 138 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Emissions Commits to reduce overall emission "In joining the Federal Government's Greenhouse Reported in 2001 that it reduced its operation generation. Challenge, AIP has drawn up a voluntary greenhouse gas (GHG) emissions by 10% Facilitative Agreement with the Government. This from its 1990 baseline, and set a new target defines respective roles and responsibilities and to maintain its net emissions at this 2001 establishes a plan of action by the Institute and level over the next decade. participating member companies to abate green- "While in some years our GHG emissions house emissions within the `no regrets' framework may increase, our objective is that our aver- of the National Greenhouse Response Strategy." age emissions will show no net increase by 2012." "Will continue to drive down the environ- mental and health impact of our operations by reducing waste, emissions and dis- charges and by using energy efficiently. We will produce quality products that can be used safely by our customers." 138 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 139 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation "In a continued effort to reduce "We will reduce and make continual "In the context of Italian efforts to meet GEMS focused on continually improv- greenhouse emissions, the company progress toward eliminating the the Kyoto Protocol requirements, ing energy efficiency and reducing is committed to `zero flare' develop- release of any substance that may intends to contribute by exploiting the GHG emissions. ment." cause environmental damage to the opportunities offered by its operations Estimates that "applications of GEMS Specific to Angola: air, water, or the earth or its inhabi- in Italy and around the world." and other systems in its refineries and "In a continuing effort to reduce tants." Environmental Challenge: "reduce GHG chemical plants have contributed to GHG emissions, the company is emissions." improvements in energy efficiency of committed to Environmental responses: more than 35 percent over a 25-year `zero flare' development of all new "expanded use of gas, as it is the period. Opportunities have been iden- fields in Block 14 fossil source with the lowest CO2 tified to further improve energy effi- in Block 0, Nemba Field develop- emissions; ciency by an additional 15 percent." ments have also proceeded with- gas/electricity integration using tech- "Pursuing innovative and advanced out flaring of associated gas, and nologies with very high conversion technologies that will have the poten- the Sanha Condensate/Bomboco output and with the possibility of sep- tial for dramatic reductions in future project will eliminate flares in arating CO2; and emissions." Areas B and C basic technologies to create a hydro- "Research efforts also focused on comprehensive initiative also is gen economy." new, affordable, and environmentally being pursued in Area A to elimi- improved products." "An inter-company working group has nate flaring" "Seeking cost-effective and system- been established...on the issue of GHG, atic ways to reduce flaring at produc- in order to develop a reporting and tion sites." accounting system for GHG emissions "In refining and chemical plants, uses worldwide, and to be able to participate flare gas compressors to recover gas in emission trading system." liquids and ultrasonic leak detection to reduce flare losses." E N V I R O N M E N T A L S T A N D A R D S 139 CRS_Annex B 3/3/04 12:14 Page 140 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Emissions (Continued) "In 2000, the linking of all the installations At US refineries, "will cut emissions by using conveying gasolines to the recovery of innovative technologies, incorporating volatile organic compounds units was com- improved leak detection and repair prac- pleted, allowing a substantial reduction in tices, and making other pollution-control the emissions of these pollutants originated upgrades." from the operations associated with these activities." 140 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 141 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A Climate gas emissions in 2002 Participant in both API and American amounted to 28.6 million tonnes/CO2e Chemistry Council programs that set (CO2 equivalents). In 2000--a reduc- goals to encourage member companies tion of roughly 15 percent compared to: with 1990. increase efforts to reduce or mitigate Expects to implement some new GHG emissions; technological measures in the support research that broadens under- course of the next few years, "while standing of climate change mecha- others will not be realized until major nisms and mitigation technologies; and refurbishment and investment pro- provide consistent reports on GHG jects are implemented in the long emissions and reduction efforts. term. Some of these proposals are still at the research and development phase. Competitive investment pro- jects are required to accomplish these measures." E N V I R O N M E N T A L S T A N D A R D S 141 CRS_Annex B 3/3/04 12:14 Page 142 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Emissions (Continued) "Efficient exploitation of hydrocarbons, giving "Responding effectively to climate change is priority to the application of high yield strategically important to our business. Our processes, energy conservation, reduction of response begins with reducing GHG emis- polluting emissions, and product recycling, sions from our own operations. We beat our must lead to a better management of hydrocar- target to reduce emissions to 10% below our bon resources, within a policy of natural 1990 baseline in 2002." resources conservation." 142 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 143 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "Oil companies are work- "Does not accept permanent "Pledged to cut emissions IFC Handbook: Limitations on concen- ing together in actively production flaring i.e. continu- from oil and gas operations tration of contaminants in the air, mea- addressing environmental ous flaring for gas disposal." by 20% per metric ton of oil sured outside the project property issues through the "Target is to achieve, by the year produced or refined over the boundary exist--for Particulate Matter, Refinery Managers' 2010, an annual reduction of 1.5 period from 1990 to 2005." Nitrogen Oxides, and Sulfur Dioxide. Environmental Forum million tonnes of CO2 equivalent "In Chemicals, where indus- (RMEF). As there has on equity basis. Results will be trial processes vary greatly been an absence of calculated by assessing the and produce a range of GHG, nationally regulated ambi- amount that would have been reduction target in absolute ent air quality standards released if no special measures terms is 35%" over the period in South Africa, the RMEF had been taken, and by compar- from 1990 to 2005. has, over the last 18 ing that figure against actual per- months been involved formance. ... Target is to with Government in the eliminate chlorofluorocarbons development of an (CFCs) and halons from our oper- Environmental ations. All new systems shall be Management Co-opera- CFC / halon free and existing CFC tion Agreement (EMCA). or halon-based units shall be Together, the industry and replace with CFC/ halon free sys- the government planned tems wherever alternative sys- to use the EMCA to set tems are reasonably available." targets, timeframes and means of reducing emis- sions from refinery processes. The Industry has worked closely with environmental NGOs and community groups in this process." E N V I R O N M E N T A L S T A N D A R D S 143 CRS_Annex B 3/3/04 12:14 Page 144 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Pollution Control "Works with others to resolve problems cre- "Examine the introduction of their own and other "Ability to respond to oil spills is based at and Hazardous ated by handling and disposal of hazardous research into practical ways of minimising pollu- local, regional and international levels." Substances substances from our operations." tion; Co-operate with government agencies that Since 1999, "reduced the number of spills request assistance with remedial action where from our operations by over 30%." pollution has occurred." Waste Management Commits to reduce overall waste generation. Monitors and manages discharges of chem- icals and other materials to water, with the aim of moving towards our goal of no dam- age to the environment. 144 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 145 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation "Continually improves processes to "We will reduce and make continual "Soil protection is a crucial part of plant Policy is to "respond quickly and minimize pollution and waste." progress toward eliminating the design and management." effectively to incidents resulting from release of any substance that may Environmental challenge: "develop its operations, cooperating with cause environmental damage to the clean fuels." industry organizations and authorized air, water, or the earth or its Environmental Responses: government agencies." inhabitants." "development of transport fuels that Committed to improve accident pre- allow use of more efficient automo- vention and incident response capa- tive and pollutant-abatement tech- bilities. "Should an incident occur, our nologies; and emergency response network would conversion of heavy fractions into mobilize the appropriate resources. medium/ light distillates." For spill response, we would capital- ize on a worldwide network of oil spill "The project long life motor oil with a cooperatives that we helped to estab- high environmental compatibility, that lish and fund. We would also utilize was concluded in 2002, has made it our stockpile of emergency response possible to identify original motor oil equipment." formulas, with the combined character- "Research efforts on dispersant and istics of long life and fuel economy that bioremediation techniques have will be a benchmark for the future expanded abilities to reduce the development of innovative products and impact of oil spills and speed recovery their qualification in the market." of impacted environments." "Continually improves processes to "We will reduce and where possible Environmental Response: "technologies "Policy to manage its business with minimize pollution and waste." eliminate waste through source for recovery and recycling of plastic the goal of preventing incidents and of reduction and recycling. All waste materials." controlling emissions and wastes to will be handled and disposed of below harmful levels; design, operate, through safe and responsible and maintain facilities to this end." methods." E N V I R O N M E N T A L S T A N D A R D S 145 CRS_Annex B 3/3/04 12:14 Page 146 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Pollution Control and Assumes the responsibility to "ensure the "To develop, design and operate facilities and "Although our operations have rarely experi- Hazardous Substances right use of energy and resources as well the conduct activities taking into consideration...the enced a serious spill, we treat every incident (Continued) incorporation of safety and innovative mea- minimisation of adverse environmental impact and as potentially serious, investigating the sures towards the management of its activi- waste generation, and the safe and responsible cause and taking remedial actions to prevent ties, minimizing the pollution and production disposal of residual wastes." future incidents." of residues in order to enable the sustainabil- Target for 2002 is to reduce reportable spills ity of the company and the environment of it." by 20 percent over 2001. "Long-term goal is "Actions related to the studies and evaluation no spills." of the land and groundwater level contamina- tion of the Galp Energia installations were pursued." Waste Management "During 2000, the Integrated Industrial Waste "To develop, design and operate facilities and "Reduction and prevention of waste, emis- (Continued) Management Plan was implemented, with the conduct activities taking into consideration...the sions, and releases will be among the top construction of temporary storage areas of minimisation of adverse environmental impact and objectives throughout our operations." waste at the refineries and at all the depots, waste generation, and the safe and responsible with a view to reducing the quantities of disposal of residual wastes." waste generated in the activities and guaran- teeing their proper management." 146 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 147 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "Companies must recognise and take Minimizes waste and ensures "safe "Continuously strives to reduce its over- action to prevent any type of ocean destruction or disposal of production all release of pollutants to the environ- and/or riverine tailings disposal that waste where reuse or recycling are ment (air, water and land)." is not acceptable. Companies should not practicable." "Employs programs and/or efficient recognise that mineral deposits must technology to achieve protection of the not be developed unless tailings con- environment" tainment is available and acceptable, "Strive to protect the surrounding envi- from safety and other perspectives." ronment at facilities and when planning for new facilities or operations" "Companies that are vertically inte- "Encourages reuse and recycling of "Will continue to reduce waste through grated companies, should produce our products." the use of source reduction, recycle/ reports showing how the company is reuse and treatment techniques. The achieving recycling of metal prod- handling and disposal of all waste will ucts. Non-vertically integrated com- be conducted in a safe and responsible panies (ie mining companies without fashion in accordance with regulatory manufacturing/retailing arms) should standards." demonstrate agreements with other companies which set out goals for metals recycling targets of goods produced from company minerals. ... Companies should set goals for waste minimisation, recycling and life cycle targets for minerals/mineral products." E N V I R O N M E N T A L S T A N D A R D S 147 CRS_Annex B 3/3/04 12:14 Page 148 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Pollution Control and "Consistent with the scientific and technical "Parties to the International Convention on Oil "Company's new long-term target means a Hazardous Substances understanding of the risks, where there are Pollution Preparedness, Response and reduction of [spills by] more than a third by (Continued) threats of serious damage to the environment, Cooperation, 1990 are required to provide assis- 2007. This will be achieved primarily through taking also into account human health and tance to others in the event of a pollution emer- further upgrading of our pipeline systems and safety, not use the lack of full scientific cer- gency. In order to effectively accomplish this continued engagement with communities to tainty as a reason for postponing cost-effective cooperation, the ARPEL Emergency Response reduce spills from sabotage." measures to prevent or minimise such dam- Planning Working Group developed the "region- age." alization" approach to oil spill contingency planning." Waste Management "Continually seek to improve corporate environ- "Efficient exploitation of hydrocarbons, giving "Oil in the water that accompanies oil pro- (Continued) mental performance, by encouraging, where priority to the application of high yield processes, duction and oil in effluents from refineries are appropriate, such activities as: development energy conservation, reduction of polluting emis- our main discharges to water. Both were and provision of products or services that ... sions, and product recycling, must lead to a bet- reduced in 2002." can be reused, recycled, or disposed of safely." ter management of hydrocarbon resources, within a policy of natural resources conservation." 148 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 149 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "Tanks are now coated "Target is to eliminate use and "Ongoing research IFC Handbook: Organizations that produce, han- with at least a 2.5 mm layer discharge of hazardous sub- focuses on developing dle, store, transport and dispose of hazardous of glass fibre and pipes are stances (substances or groups new technologies to materials (chemicals, gases, vapors, fumes, made of a type of plastic to of substances that are toxic, reduce waste production dust, fibers, etc.) shall in addition to the present prevent rust and leaks. A persistent and liable to bioac- at source, improve treat- guidelines fulfill the requirements of the IFC prioritised programme for cumulate). Chemicals contain- ment options and treat Hazardous Materials Management Guidelines. tank replacements is in ing hazardous substances may new by-products." IFC General Guidelines: The employer shall progress. This is resulting only be used if technical or avoid the use of any hazardous substance by in a significant reduction in safety performance is jeopar- replacing it with a substance that under its nor- the number of incidents of dised, still the environmental mal conditions of use is not dangerous or less leaking tanks." risk should be minimized." dangerous to the workers, if the nature of the activity so permits. Precautions must be taken to keep the risk of exposure as low as possible. Basel Convention on the Control of Trans- boundary Movements of Hazardous Wastes and Their Disposal, works to reduce the movement of hazardous wastes, to ensure that wastes are disposed of as closely as possible to where they were produced, and to minimize the generation of hazardous wastes in terms of quantity and level of hazardousness. "More than 8400 used oil col- "Waste shall be regarded as a "Generally, speaking, all IFC Handbook: Sewage sludge must be lection tanks have now been resource and treated in the fol- new processes are disposed of in an environmentally accept- placed at locations around the lowing order of priority: re-use, designed to generate as able way in compliance with local laws country. The oil from these tanks recycling, energy recovery and little waste as possible, and regulations. is collected by specialised deposition of residual waste. with the priority on recy- Project sponsors should recycle or reclaim trucks and taken to depots Waste sorting shall be based cling by-products and materials where possible. from where it is dispatched on regional opportunities for recovering them as mate- to recyclers. A new depot, with further treatment of the various rials or energy. Where a 32,0000 litre capacity, has fractions. Volumes of waste such solutions are not an recently been opened in Port shall be registered in an envi- option, landfills and incin- Elizabeth and will contribute to ronmental accounting system." eration are used." the 34 million litres of discarded oil now being collected annu- ally. This anti-pollution pro- gramme, having cost the industry some $117 million since 1996, has saved about 226 million litres of oil from polluting the environment." E N V I R O N M E N T A L S T A N D A R D S 149 CRS_Annex B 3/3/04 12:14 Page 150 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Suppliers Seeks partners whose policies are consis- tent with its own. Makes contractors and suppliers aware of company's commitments and expectations, and of their responsibilities in implementing them. Transport "Counsels customers, transporters and oth- AIP Codes of Practice and Guidelines recom- "Managing the transport risks associated ers in the safe use, transportation and dis- mend `best practice' procedures for dealing with with our activities is a priority. Will continue posal of our raw materials, products and operations surrounding the transport, storage to emphasize safety as the highest priority." waste materials." and handling of petroleum products, as well as the design of facilities. 150 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 151 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation Adopted the Global Sullivan "In dealing with third parties, employ- Principles, which includes: "promote ees shall require the third parties to the application of [the Sullivan social respect the obligations in the Code rele- responsibility] principles by those vant to their activities . . . and adopt with whom we do business." proper internal actions . . . in the event that any third party should fail to comply with the Code." With regard to activities assigned to contractors, the company "shall formu- late suitable guarantees against possi- ble violations within the framework of existing contractual relations." Environmental challenge: "increase oil "In Africa, road safety is a large risk spill prevention during transport and to employees and their communities. distribution and rapid emergency Working with others on a major road response capability." safety initiative to reduce risks." "Can respond individually to oil spills of varying severity both with its own and third-party structures. In particular, the Group is member of the Oil Spills Response Ltd, a consortium that guar- antees rapid response (within 24 hours) to any type of oil-spill emergency any- where in the world." "Committed to the continuous improve- ment of its response capabilities in case of oil spills ." Environmental response: "strict selec- tion procedures for tankers." E N V I R O N M E N T A L S T A N D A R D S 151 CRS_Annex B 3/3/04 12:14 Page 152 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Suppliers (Continued) Transport (Continued) "Support and participation in training ses- "Provides information to all parties on the sions on Alternative Fuels in Transport." safe use, handling, transportation and dis- "The introduction of training programs in posal of raw materials, products and defensive driving for 900 members of staff." wastes." 152 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 153 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A Based on its main environmental challenges, "will influence our part- ners to perform in accordance with our policy [and] set environmental requirements for selection and fol- low-up of suppliers and contractors." "Emphasizes care for the environ- ment in our selection of suppliers." "Companies should identify mecha- "Designs products to have the mini- "Will share its experience and expertise nisms by which all the environmental mum adverse effect on the environ- and offer assistance to others in the safe and social costs involved in transport ment throughout their entire life use, transportation and disposal of our and trade operations can be avoided cycle...also implies optimization of products." or minimised." transport internally and externally." E N V I R O N M E N T A L S T A N D A R D S 153 CRS_Annex B 3/3/04 12:14 Page 154 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Suppliers (Continued) "Encourage, where practicable, business part- "The ability to promote [the General Business ners, including suppliers and subcontractors, to Principles] effectively will be an important apply principles of corporate conduct applica- factor in the decision to enter into or remain ble with the Guidelines." in [business] relationships." Transport (Continued) "Safety is always our foremost concern and we set high standards for our own ships and those we charter. ... Shell has its own long- standing system of ship quality assurance, to avoid being associated in any way with a sub-standard vessel. Accredited inspectors undertake rigorous ship inspections. Our Ship Quality Assurance team assesses the inspec- tion reports and other information each time a vessel is offered to us for charter. We insist on evidence that a ship is suitable for use ­ what we call positive vetting. We will not use a ship that compromises our standards. Shell is working to raise overall standards of tanker safety." 154 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 155 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards Makes company's "attitudes "Expects its suppliers to known to the authorities, part- adhere to a code of conduct ners, suppliers and other inter- equivalent to its own." ested parties." "Will favor the selection of its Aims to "establish a group pol- industrial and business part- icy on reputational due dili- ners on the basis of their abil- gence in 2003 to address ity to comply with its policy pre-contract verification of on safety, health, environ- business counterparts." ment and quality." "In order to address the "Vessels shall be vetted "No oil tanker more than 25 [risk of marine spills], the according to Statoil vetting years old may be chartered, oil companies have procedure and vessels > 5000 whatever its tonnage." together bought oil spill dwt carrying heavy fuel or simi- "No ship more than 20 years response equipment, lar products as cargo must old and weighing more including booms to contain have double hull." than 80,000 tons may be the oil on the water and "Safety and environmental per- chartered." skimmers to remove the oil formance are important in "Ships 15 years or older must from the water surface, selecting road tankers. Key have undergone in-dock and positioned these in all measures include a high carry- inspection in the 30 months ports and harbours. Oil ing capacity to reduce the preceding the charter date." spill contingency plans number of consignments, mod- "Ships 15 years or older can have been compiled for ern engine technology with only be chartered if they each area so that immedi- lower fumes, optimal route have been classified with the ate action can be taken to planning through good naviga- same classification society limit the impact of tion systems, and using diesel for at least two years." spillage." oil with good environmental "All vessels chartered must properties." have been inspected in the six months preceding the charter." "First oil company to voluntar- ily implement such measures." E N V I R O N M E N T A L S T A N D A R D S 155 CRS_Annex B 3/3/04 12:14 Page 156 American Petroleum Institute (API)i Australian Institute of Petroleum (AIP)ii BP p.l.c. Monitoring and "Ensure employees and management at all levels Comprehensive HSE incident reporting sys- Compliance understand their stewardship responsibilities." tem enables all accidents, spills and other Framework "Monitor compliance at the operating level with HSE events to be recorded, together with company policy, government regulations and progress on all HSE actions from incident industry guidelines." investigations and assurance audits. "Increase emphasis on training, supervision and motivation of employees." "Maintain an emergency response capability." 156 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 157 Coalition for Environmentally Responsible Economies ChevronTexaco Corporation (CERES), CERES Principlesv Eni S.p.A. Exxon Mobil Corporation Verifies conformity with company "We will conduct an annual self- To meet best international practices Before investing in a major project, policy and government regulations. evaluation of our progress in imple- regarding HSE, the company "must "prepares comprehensive environ- Ensures that employees and contrac- menting these Principles. We will implement systematic benchmarking mental and social assessments." tors understand their safety, health support the timely creation of gener- processes." Environmental and Social Impact and environmental responsibilities. ally accepted environmental audit "Operational management must be sub- Assessments (ESIA) process compiles Issued detailed compliance guide- procedures. We will annually com- ject to constant auditing in all sectors." baseline data obtained through field lines ­ all employees should be plete the CERES Report, which will be "The foregoing principles must be con- programs or from outside sources. It aware that the company "has sub- made available to the public." stantly reviewed and their application identifies potential risks to communi- stantial support resources for help "We will implement these Principles periodically monitored." ties in which it operates. ESIA with questions relating to health, and sustain a process that ensures "To improve HSE performance, it is involves public meetings with local environmental and safety matters." that the Board of Directors and Chief important to have in place a system of citizens. Executive Officer are fully informed measurement and control. The manage- "Policy to implement programs and about pertinent environmental issues ment system includes a control phase appropriate protective measures to and are fully responsible for environ- and the identification of eventual cor- control [health] risks, including appro- mental policy. In selecting our Board rective action through continuous moni- priate monitoring of its potentially of Directors, we will consider demon- toring, audits and reporting. The affected employees." strated environmental commitment management review phase completes Policy is to "undertake appropriate as a factor." the continuous improvement cycle and reviews and evaluations of its opera- establishes the basis for the subse- tions to measure progress and to quent cycle. In fact it includes two ensure compliance with this policy." activities: an analysis of gap between results and targets and the definition of objectives for the subsequent cycle." E N V I R O N M E N T A L S T A N D A R D S 157 CRS_Annex B 3/3/04 12:14 Page 158 Galp Energia, SGPS, S.A. International Chamber of Commerce (ICC) Marathon Oil Corporation Monitoring and "The definition and establishment of priorities "To educate, train and motivate employees to "Complies with all applicable environmental, Compliance and the beginning of unified procedures conduct their activities in an environmentally health, and safety laws." Framework development in the areas of the Environment, responsible manner." Ensures that "employees are trained and (Continued) Quality and Safety. This analysis led to the "To develop and maintain, where significant haz- educated on HES issues." process of standardisation and integration in ards exist, emergency preparedness plans in con- "HES performance will be measured and the following domains: junction with the emergency services, relevant communicated through compliance reviews indicators and performance monitoring of authorities and the local community, recognizing and audits conducted periodically." the different business areas; potential transboundary impacts." structural documents of Environment, "To measure environmental performance; to con- Quality and Safety Management System; duct regular environmental audits and assess- reporting and investigating incidents; ments of compliance with company requirements, assurance process for the Environment, legal requirements and these principles; and peri- Quality and Safety policy accomplishment." odically to provide appropriate information to the Board of Directors, shareholders, employees, the authorities and the public." 158 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 159 Mineral Policy Institute, Principles for the Conduct of Company Operations within the Minerals Industryxii Norsk Hydro ASA Occidental Petroleum Corporation Odebrecht S.A "Companies should establish base- "The reporting of incidents is impor- "HES audit program has four tiers that line monitoring programs at a very tant from the point of view of acci- intersect to provide a comprehensive early stage." dent prevention. All accidents will be and rigorous review: "Companies should adhere to codes investigated in order to identify the first is a system of frequent facility of conduct that are acceptable to causes and how one may prevent a self-assessments; NGOs and landowners groups/com- repetition. We are especially keen to second tier involves periodic HES munities in the host countries (where improve the reporting of near-misses. audits or assessments of all signifi- projects are occurring). Codes should This is important from when it comes cant operating facilities worldwide include: to eliminating dangerous conditions, (most major facilities are audited every the company's position in relation norms and behaviour so that acci- two years); to issues: its philosophy and ratio- dents do not take place. In 2002 we third tier is occasional facility audits nale; considerably improved our reporting by the corporate HES department and the mechanisms by which the com- of near-misses. We are working annual evaluations of the business pany will fulfill its obligations; actively to identify individual and segment audit programs for confor- the nature and format of a regular, group behaviour in the organization. mance to accepted auditing criteria; open and candid reporting system; The aim of this process is to find out and and the norms that need to be estab- fourth tier is a review by the corporate provision for independent monitor- lished and implemented, as well as to HES department of each business seg- ing, undertaken in consultation focus on the consequences of care- ment's overall HES management sys- with NGOs with expertise." less behaviour." tem, which is conducted "Companies should support the approximately every four years and establishment of an independent and presented to the Board of Directors." accessible complaint mechanism, to which communities who feel that the industry's standards have been breached by a particular mine can bring complaints." E N V I R O N M E N T A L S T A N D A R D S 159 CRS_Annex B 3/3/04 12:14 Page 160 Organisation for Economic Co-operation Regional Association of Oil and Development (OECD), Guidelines for and Natural Gas Companies in Latin Multinational Enterprises America and the Caribbean (ARPEL) Shell International Limited Monitoring and "Maintain contingency plans for preventing, "Actions aimed at preserving the environmental "Manages [health, safety and environmental] Compliance mitigating, and controlling serious environmen- equilibrium must favor prevention, rather than matters as any other critical business activ- Framework tal and health damage from their operations, correction of negative impacts, through envi- ity, set targets for improvement, and mea- (Continued) including accidents and emergencies; and ronmental impact assessments for new pro- sure, appraise and report performance." mechanisms for immediate reporting to the jects and periodical environmental "Reports a broader measure of safety that competent authorities." performance monitoring of the operation includes [in addition to fatalities] injuries, facilities." minor accidents and incidents." To support the MHMS programme, the com- pany "developed guidance and tools to raise understanding, improve competence and encourage the sharing of good practice." 160 O I L A N D G A S S E C T O R CRS_Annex B 3/3/04 12:14 Page 161 Social Accountability South African International, Petroleum Industry SA8000 Association (SAPIA) Statoil ASA TOTAL S.A. International Standards "The company shall "Carried out a systematic sur- "Implementation of manage- IFC Environmental Guidelines for appoint a senior manage- vey of safety conditions for its ment systems will be based Health & Safety: Annual report to IFC ment representative offshore and land-based facili- on exchanges of information, required on OHS to include host coun- responsible for the health ties in 2001-02. Anything which performance reviews, con- try regulatory compliance and OHSMS and safety of all person- did not meet its standards is sultation and training." reporting; periodic audits and manage- nel, and accountable for being rectified, and condition "Takes account of the needs ment reviews. the implementation of the monitoring will be conducted of today's consumers and the IFC: Mandatory public disclosure of EA Health and Safety ele- regularly. The methodology interests of the future gener- reports; during project implementation, ments of this standard." developed by the group through ations by an active policy of the project sponsor reports on compli- "The company shall this work, in cooperation with environmental protection, ance with (a) measures agreed with ensure that the require- Det Norske Veritas, has been which is an element of the IFC on the basis of the findings and ments of this standard are described as pioneering by the Group's strategy of sustain- results of the EA, including implemen- understood and imple- Norwegian authorities." able development on which it tation of any EAP, as set out in the proj- mented at all levels of the "Before operations begin in a regularly provides transpar- ect documents; (b) the status of organisation; methods new area, the status of the ent reporting." mitigatory measures; and (c) the find- shall include, but are not affected environment must be ings of monitoring programs. limited to: surveyed, followed by monitor- UN Norms: Transnational corporations clear definition of roles, ing of critical parameters "shall be subject to periodic monitoring responsibilities, and revealed in the Environmental and verification by UN, other interna- authority; Impact Assessment (EIA) dur- tional, and national mechanisms, training of new and/or ing operation. This EIA shall be already in existence or yet to be cre- temporary employees closely linked to the Social ated, regarding application of the upon hiring; Impact Assessment." Norms. This monitoring shall be trans- periodic training and parent, independent, and take into awareness programs account input from stakeholders for existing employees; (including NGOs) and as a result of and complaints of violations of these continuous monitoring Norms. Further, transnational corpora- of activities and results tions and other business enterprises to demonstrate the shall conduct periodic evaluations con- effectiveness of sys- cerning the impact of their own activi- tems implemented to ties on human rights under these meet the company's Norms." policy and the require- ments of this standard." E N V I R O N M E N T A L S T A N D A R D S 161 CRS_Annex B 3/3/04 12:14 Page 162 Endnotes i API is a trade association representing more than 400 members involved in all aspects of the oil and natural gas industry. The principles cited are not binding on its members. Analysis based on: Mission Statement and Guiding Principles. ii BP p.l.c.'s guiding Principles of Health and Safety include: all accidents and occupational illnesses are preventable; health and safety are operational management responsibilities and managers must ensure sufficient resources are in place to provide a safe and healthy workplace; and every employee has a personal responsibility to work in a safe and healthy way at all times. iiiThe reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. iv The reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification v CERES is a coalition of investors, environmentalist and public interest groups that promote corporate environmental responsibility in a number of ways, from encouraging companies to endorse the CERES Principles, to working with endorsing companies both on meeting their commitment and on environmental reporting through the Global Reporting Initiative, and mobilizing the network in innovative projects like the Sustainable Governance Project and the Green Hotel Initiative. vi The reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification 162 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 163 C A N N E X Oil and Gas Sector Socio-Economic Issues Companies/Organizations: Social Accountability International, SA8000 South African Petroleum Industry Association (SAPIA) American Petroleum Institute(API) Statoil ASA Amnesty International, Human Rights Principles for Companies TOTAL S.A. Australian Institute of Petroleum (AIP) Transparency International and Social Accountability BP p.l.c. International, Business Principles for Countering Bribery Caux Roundtable (The), Principles for Business International Standards ChevronTexaco Corporation Eni S.p.A. Issues Examined: Exxon Mobil Corporation Galp Energia, SGPS, S.A. Public Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164-169 International Chamber of Commerce (ICC) Social Impact Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170-175 Marathon Oil Corporation Indigenous People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176-181 Mineral Policy Institute (MPI), Principles for the Conduct of Company Land Rights, Resettlement, and Displacement . . . . . . . . . . . . . . . . . . . . . . . . . . 182-187 Operations within the Minerals Industry Local Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188-193 Norsk Hydro ASA Bribery and Corruption/Facilitation Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . 194-199 Occidental Petroleum Corporation Political Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200-205 Odebrecht S.A. Financial Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206-211 Organisation for Economic Co-operation and Development (OECD), Guidelines for Multinational Enterprises Competition and Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212-217 Regional Association of Oil and Natural Gas Companies Voluntary Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212-217 in Latin America and the Caribbean (ARPEL) Third Party Applicability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218-223 Shell International Limited 163 CRS_Annex C 3/3/04 12:16 Page 164 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Public Participation "To recognize and to "The company policy should "Confer with Must "be open to partnership with government, civil respond to community enable discussion with the Governments, the com- society and international organizations that play concerns about our raw authorities at local, provincial and munity, other industries, their role in Angola's development." materials, products and national levels of specific cases of employees and profes- "Commissioned two external consultants to under- operations." human rights violations and the sional bodies on the take a number of discussions with a cross-section of need for safeguards to protect range of environmental stakeholders affected by our business in Angola." human rights." issues which relate to the industry's opera- tions and its products." 164 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 165 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "We have a respon- "Reaches out to the "Committed to understand and respect the cultural, social, eco- Pledges to be a good corporate citizen in all the places it sibility to recognize community and nomic and environmental contexts in which its business initiatives operates. "Will maintain the highest ethical standards, government's legiti- engage in open dia- are developed and to find innovative solutions for the preservation obey all applicable laws and regulations, and respect mate obligation to logue to build trust." of the natural and social environment affected by its activities." local and national cultures." the society at large "Aims to establish strong cooperative ties with the producing coun- Strives to strengthen local communities through its and support public tries and to promote good relationships with all its stakeholders. " activities, for example: policies and prac- "Dedicated to contributing building capacity, improving living supports training and education; tices that promote conditions and enhancing socio-economic development in the makes an effort to use qualified and competitive human development areas in which it operates. Committed to dialogue and combine local suppliers of goods and services; through harmonious efforts, resources, skills and knowledge with communities, when operating in communities that lack local capa- relations between local authorities, development agencies, humanitarian organi- bilities, works with governments and others to business and other zations and other sectors of civil society." develop them; segments of society; "Respects all stakeholders (employees, shareholders, cus- facilitate the transfer of skills and technology; and [and] collaborate tomers, suppliers, communities, business and financial part- when staffing operations, hires qualified citizens of with those forces in ners, institutions, public organizations, industry associations, the communities in which it is operating. the community dedi- trade unions, and others) with whom it deals when carrying out Contributes to society through the manner in which it con- cated to raising stan- its business activities, in the belief that they represent an ducts its business by operating with honesty, integrity and dards of health, important asset for the company." the highest ethical standards. education, workplace "Committed to actively contributing to promoting the quality of "Hopes to set an example of responsible corporate cit- safety and economic life and the socio-economic development of the communities izenship." well-being." where the Group operates and to the development of their "A key factor in evaluating a potential investment in a human resources and capabilities." developing nation is the nature of that country's legal system. In nations that lack well-developed legal and commercial systems, seeks ways to establish and strengthen appropriate institutions and norms." S O C I O - E C O N O M I C I S S U E S 165 CRS_Annex C 3/3/04 12:16 Page 166 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Public Participation "Seeks to fulfill the expectations Companies should fully disclose all (Continued) of the community, government, commissioned reports by govern- customers, employees, busi- ments, companies and other stake- ness partners, suppliers, media, holders relating to environmental, non-government organizations social, human, political, civil and and labour organizations in an social rights and health and safety effective and transparent way issues. consistent with a commitment Companies should include community to social, environmental and participation at all stages of project ethical concerns." identification, development and moni- toring. Companies should include Non- Governmental Organisations (NGOs)/ communities and/or their nominated representatives, in the community's right to know and participation in the development of environmental impact statements and social impact statements. 166 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 167 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "Developed guidelines for "Regularly participate in an open dialogue with Fulfill "basic social responsibility by doing "Taking into account concerns managing social issues in neighboring communities to share information high-quality, productive work, providing about cost, business confiden- local communities affected and respond to the public's input or concerns excellent services and products, obeying the tiality, and the protection of by the company's industrial about safety, health and environment." law, preventing waste and caring responsibly intellectual property rights, activities, and we foster Occidental's Good Neighbor Principles: for the environment." [companies should] engage in openness and transparency. to uphold the human, cultural and legal rights "As a result, they satisfy their clients, create adequate and timely communi- Ambition of being a respon- of our neighbors directly impacted by work opportunities, contribute to the develop- cation and consultation with the sible player in society is also Occidental's operations and to support efforts ment of the countries and regions in which communities directly affected by reflected in our engagement to maintain the integrity of their customs, val- they are present and generate wealth for the environmental, health and with NGOs. Our dialog with ues and traditions; society at large." safety policies of the enterprise NGOs is based on openness, to assist our neighbors in developing ways to "The Group spontaneously undertakes to and by their implementation." and we enter into co-opera- become self-sufficient and to achieve economic expand these contributions to the community tion and alliances where we sustainability without creating dependency; through its subsidiaries' sponsorship of edu- perceive mutual benefits to to serve as a catalyst to help neighboring com- cational and cultural initiatives, the work of the community, NGOs, and munities identify and prioritize needs and to the Odebrecht Foundation and support for the the company." work with the appropriate government agen- Hospitality Institute." "Co-operation and dialogue cies to develop responsive programs; "Should be encouraged to get involved in vol- with NGOs and stakehold- to safeguard our neighbors from any harmful unteer work and community service." ers, both locally and globally impact of our operations; and to develop mutual under- to develop methods to resolve potential con- standing." flict in achieving mutually beneficial agree- ments with our neighbors. S O C I O - E C O N O M I C I S S U E S 167 CRS_Annex C 3/3/04 12:16 Page 168 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Public Participation "ARPEL Member Companies will develop "We affect--and are affected by-- (Continued) their work with respect for the communi- many different groups of people, our ties living in the areas influenced by their stakeholders. We aim to recognise operations, promoting good neighborhood their interest in our business and to lis- activities, and advising the public at large ten and respond to them." of the safe use and handling of petroleum products." "The working group in charge of Relations with Communities is currently developing works considered a landmark by the World Bank." 168 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 169 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "Together with relevant "Forges harmonious, sustainable Community participation emphasized in World stakeholders and peer com- relations with all host communities Bank Operational Directive 4.30 on Involuntary panies, we will strive to by emphasizing dialogue and coop- Resettlement (June 1990). develop methods which eration." improve our understanding of and support for human rights." S O C I O - E C O N O M I C I S S U E S 169 CRS_Annex C 3/3/04 12:16 Page 170 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Social Impact "All companies should take rea- Before making major investments in a new area, Assessment sonable steps to ensure that their evaluates "the likely impact of its presence and operations do not have a nega- activities. These assessments will consider the tive impact on the enjoyment of likely impact of major developments on local com- human rights by the communities munities and indigenous peoples, local infrastruc- in which they operate. This ture and the potential for conflict and its implications should include a willingness to for security." meet with community leaders and voluntary organizations to discuss the role of the company within the broader community. Companies should seek to sup- port activities and organizations which promote human rights, for example by supporting educa- tion, training or citizenship pro- grams which incorporate human rights issues and organizations which defend human rights." 170 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 171 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "Implements a number of measures to evaluate Before investing in a major project, the overall impact of its business activities." prepares "comprehensive environmen- tal and social assessments. Our Environmental and Social Impact Assessments (ESIA) process compiles baseline data obtained through field programs or from outside sources. It identifies potential risks to communi- ties" in which it operates. S O C I O - E C O N O M I C I S S U E S 171 CRS_Annex C 3/3/04 12:16 Page 172 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Social Impact Does not "force the workers "To assess environmental Companies should carry out ESIA for Assessment towards bad influences in their impacts before starting a new both exploration and mining activities. (Continued) conditions of work or of their activity or project and before The company using independent con- co-workers." decommissioning a facility or sultants agreed to by both the com- leaving a site." pany and the community, or the representative organisation of the community's choice should pay for studies. All environmental impact assessments should include the option for mining not to proceed at all if envi- ronmental and social impacts are found to be sufficiently severe. 172 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 173 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises Social impact "Staff in each project, with the support of the assessments are Corporate Environmental Manager, should provide the performed in local following: communities evaluate the risks of causing irreversible damages to where it operates. identified cultural properties during project imple- "Assessments are mentation; performed for prepare a plan to protect cultural properties in areas each project in under the responsibility of Odebrecht; Hydro Oil & Energy evaluate measures developed by the national and for major pro- authorities to protect cultural properties; jects in Hydro proceed with the project when procedures estab- Aluminium." lished by the legal authority to protect cultural prop- erty are effective and when the risk of damage to such property is small in comparison to the benefits of the project; define conditions to proceed with the project when the legal authority establishes that the risks of dam- age are significant and relevant; proceed with projects that affect cultural property only when an approved protection plan is in place; recommend interruption of the project when the legal authority establishes that risks of damages are high and the protection or rescuing plan is disre- garded, non-existing or insufficient; in cases where the risk of damaging cultural prop- erty is high, the Corporate Environmental Manager will prepare a report to inform the Board of Directors and the International Finance Corporation (IFC) of such risk; help the contracting party conduct an adequate risk evaluation and prepare a plan for protection of cul- tural properties, all in accordance with the require- ments of the national authorities; and abstain from participating in projects not approved by the legal authority because of the high potential of damage to cultural properties." S O C I O - E C O N O M I C I S S U E S 173 CRS_Annex C 3/3/04 12:16 Page 174 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Social Impact "In 2001, our businesses created a dedi- Assessment cated Social Performance Management (Continued) Unit to support their efforts to improve our social performance." 174 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 175 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "We need strategic assess- "TOTAL systematically conducts "The enterprise should establish feedback IFC Policy on Environmental Assessment, OP ments which capture possible environmental and societal impact mechanisms and other internal processes 4.01: Requires environmental assessments (EA) impacts both at the micro or surveys to more accurately assess supporting the continuous improvement of of projects proposed for IFC financing to help project level. In connection the positive and negative conse- [its Programme for Countering Bribery]." ensure that they are environmentally sound and with our investment in quences of our operations." "The enterprise should subject the internal sustainable, and thus to improve decision-mak- Azerbaijan and Angola, we control systems, in particular the account- ing...EA takes into account the natural environ- commissioned country analy- ing and record keeping practices, to regular ment (air, water, land); human health and ses with a broader socio- audits to provide assurance that they are safety; social aspects (involuntary resettlement, political and socio-economic effective in countering bribery." indigenous peoples, cultural property); and focus." "Senior management of the enterprise transboundary and global environmental should monitor the Programme and periodi- aspects. cally review the Programme's suitability, adequacy and effectiveness and implement improvements as appropriate. They should periodically report to the Audit Committee or the Board the results of the Programme review." "The Audit Committee or the Board should make an independent assessment of the adequacy of the Programme and disclose its findings in the Annual Report to share- holders." S O C I O - E C O N O M I C I S S U E S 175 CRS_Annex C 3/3/04 12:16 Page 176 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Indigenous People "All companies should take rea- "Liaise with government and responsible NGOs to sonable steps to ensure that respect land and other rights of indigenous peoples." their operations do not have a Consultations engaged "cross-section of stakehold- negative impact on the enjoy- ers" in Angola. ment of human rights by the communities in which they operate. This should include a willingness to meet with com- munity leaders and voluntary organizations to discuss the role of the company in the broader community." 176 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 177 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "Respect the integrity of local Abides by Sullivan Principle of seeking "Draws inspiration for its business conduct Has "a long tradition of helping develop cultures; support peace, security, "to provide training and opportunities from its respect for the cultures, religions, tra- prosperous and stable communities. diversity, and social integration." for workers from disadvantaged back- ditions and ethnic diversity of the communities This requires a deep respect for and grounds." where it operates and is committed to preserv- understanding of different people and ing biological, environmental, social, cultural cultures, and a keen appreciation for and economic identities." what our role in society should be." Pledges to be "a good corporate citizen in all the places we operate worldwide." "Will maintain the highest ethical stan- dards, obey all applicable laws and regulations, and respect local and national cultures." S O C I O - E C O N O M I C I S S U E S 177 CRS_Annex C 3/3/04 12:16 Page 178 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Indigenous People "Sensitive to the diversity of Companies must recognise indigenous (Continued) social and business cultures." people and their traditional or custom- Recognizes the need to explore, ary ownership of land especially produce, transport and manufac- where a host government does not ture energy products "with the recognise the legal status of custom- highest regard for the health and ary land. safety of the communities" in Companies should "respect the which it operates. integrity of the local cultures." 178 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 179 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "We recognize Occidental's Good Neighbor Principles: "Activities related to indigenous peoples must comply the intrinsic to uphold the human, cultural and legal rights of with applicable legal requirements, including permit value of the dif- our neighbors directly impacted by Occidental's conditions, project specific authorizations and the con- ferent cultures in operations and to support efforts to maintain the ditions defined by the contracting entity." which we oper- integrity of their customs, values and traditions "The following principles should be followed within the ate, and will to assist our neighbors in developing ways to area of influence of development projects: show respect for become self-sufficient and to achieve economic development projects should not adversely affect these cultures in sustainability without creating dependency indigenous peoples; all our business to serve as a catalyst to help neighboring commu- informed participation by indigenous peoples should practices." nities identify and prioritize needs and to work be the strategy for addressing issues pertaining to "Will pay special with the appropriate government agencies to them; and attention to the develop responsive programs resources invested in development projects should rights, require- to safeguard our neighbors from any harmful benefit indigenous peoples directly affected by such ments and cul- impact of our operations projects." tural integrity of to develop methods to resolve potential conflict in "Management Staff in specific contracts, with the sup- indigenous peo- achieving mutually beneficial agreements with port of the Corporate Environmental Manager, should: ple affected by our neighbors our operations." identify negative impacts of projects on indigenous peoples during the project bidding phase (if possible) or during the preparation of the Construction Site Environmental Management Plan; identify responsibilities for the preparation of plans and activities related to indigenous peoples and evaluate the role of Odebrecht in such plans and activities; encourage, orient and contribute to the preparation of an action plan that is consistent with the com- pany's policies; within the limits of the contracted conditions, evalu- ate plans and activities of the project affecting indigenous peoples; and prepare a report for the Board of Directors compar- ing the contents of plans and activities affecting indigenous peoples with the company's policies and make recommendations.i" S O C I O - E C O N O M I C I S S U E S 179 CRS_Annex C 3/3/04 12:16 Page 180 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Indigenous People ARPEL has established guidelines that "Operations can also have a negative (Continued) "have been developed jointly between impact on local communities. For industry and indigenous peoples...the instance, building new facilities may aim was to establish a set of indicators require local residents to be resettled." that both parties would deem most rele- "Direct neighbours may be subject to vant." noise or other environmental nui- "Tripartite meetings have taken place sances. May cause a construction between indigenous peoples, the gov- boom when we arrive that drives up ernment, and the oil industry." local prices and strains services. "The road to an open dialogue among Committed to working together with the government, indigenous peoples and the community to limit these disruptions." oil industry in Latin America has already Abides by Sullivan Principle of seeking been trodden. The tripartite meetings "to provide training and opportunities have helped improve the understanding for workers from disadvantaged of concerns and interests of the three backgrounds." parties involved. Despite the fact that regional meetings are dialogue instances and not negotiation rounds, the Latin American oil and gas industry has found in the meetings an ideal mechanism for a better understanding of the expectations and objectives of the three parties. This has become evident over the course of different national meetings and during the four interna- tional tripartite meetings." 180 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 181 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "Will show respect for International Covenant on Civil and Political Rights, Art. 27: ethnic minori- local cultures and tradi- ties "shall not be denied the right, in community with the other members tions, and cooperate of their group, to enjoy their own culture." with people affected by International Labour Organisation (ILO) Convention 169 (Indigenous and our operations." Tribal Peoples) in Independent Countries. "We will be increasingly United Nations (UN) Draft Declaration on the Rights of Indigenous Peoples involved in areas where (reflects the input of indigenous people as well as national governments). our operations require World Bank Operational Directive 4.20 on Indigenous Peoples (Sept 1991): contact with indigenous Ensure that indigenous people benefit from development projects, and peoples and their rights. avoid or mitigate potentially adverse effects on indigenous people caused ... Relations with indige- by Bank-assisted activities; ensure that the development process fosters nous peoples are also full respect for their dignity, human rights, and cultural uniqueness. More important in other parts specifically, the objective at the center of this directive is to ensure that of our international busi- indigenous peoples do not suffer adverse effects during the development ness. We will accord- process, particularly from Bank-financed projects, and that they receive ingly develop guidelines culturally compatible social and economic benefits; strategy for addressing in 2003 on how to deal the issues pertaining to indigenous peoples must be based on the informed more systematically with participation of the indigenous people themselves. issues relating to the World Bank Operational Directive 4.30 on Involuntary Resettlement (June 1990). rights of indigenous peo- World Bank/IFC: Cultural Property (OPN 11.03, Sept 1986): Assist in preser- ples affected by our vation of cultural properties and avoid their elimination. The Bank nor- operations." mally declines to finance projects that will significantly damage non-replicable cultural property, and will assist only those projects that are sited or designated so as to prevent such damage. The Bank will assist in the protection and enhancement of cultural prop- erties encountered in Bank-financed projects, rather than leaving that protection to chance. (Policy Note 11.03, Cultural Property). UN Norms: Transnational corporations and other business enterprises shall respect the rights of local communities affected by their activities and the rights of indigenous peoples and communities consistent with international human rights standards such as ILO Convention 169 (Indigenous and Tribal Peoples). They shall particularly respect the rights of indigenous peoples and similar communities to own, occupy, develop, control, protect, and use their lands, other natural resources, and cultural and intellectual property. Indigenous peoples and communities shall not be deprived of their own means of subsistence, nor shall they be removed from lands which they occupy in a manner inconsistent with ILO Convention 169. Further, they shall avoid endangering the health, environment, culture, and institutions of indigenous peoples and communities in the context of projects, including road building in or near indigenous peoples and communities. Transnational corporations and other business enterprises shall use particular care in sit- uations in which indigenous lands, resources, or rights thereto have not been adequately demarcated or defined. S O C I O - E C O N O M I C I S S U E S 181 CRS_Annex C 3/3/04 12:16 Page 182 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Land Rights, Aspiration to not move a community against its will. Resettlement, and Tries "to avoid physical resettlement wherever pos- Displacement sible, but when a project makes resettlement unavoidable, ensures that it is minimised and carried out through a fair process, in consultation with the people affected." Always aims to "restore or improve the income-gen- erating capacity and quality of life of anyone reset- tled as a result of our activities. " "In 2002, developed a set of guidelines on resettle- ment for our businesses in partnership with a major economic and social rights NGO. Guidelines are based on international best practice and interna- tional human rights law." 182 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 183 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation Abides by Sullivan Principle of express- "Fully complies with all the regulatory stan- In Cameroon and Chad, as a result of ing "support for universal human rights dards set by national laws as well as by ESIA discussions, "the pipeline was and, particularly, those of our employ- national and international standards. Always rerouted to avoid settlements, impor- ees, the communities within which we takes adequate measures to ensure the tant hunting areas and environmentally operate and parties with whom we do responsible management of its operations, sensitive habitats" business." with particular reference to the most sensitive "With the direct input of local citizens, aspects, such as respect of human and social programs were also developed to com- rights, environmental impact, security policy. " pensate for temporary loss of crops "Systematically engaged in open consultation and in some instances for resettlement. processes with local populations and imple- The World Bank's inspection panel menting tools to appraise the overall impact of described the compensation program its activities." as `fair, transparent and efficient.'" "Land acquisition is always obtained through voluntary agreements with landowners, and standard compensation rates for restriction of land use are paid in accordance with national laws." S O C I O - E C O N O M I C I S S U E S 183 CRS_Annex C 3/3/04 12:16 Page 184 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Land Rights, Companies should not forcibly remove Resettlement, and or be a party to others who want to Displacement remove indigenous people from their (Continued) land or territories. No relocation shall take place without free and informed consent of the indigenous peoples concerned and after agreement on just and fair com- pensation. Companies should not operate any project in areas where any forced removals from land have occurred. Companies should ensure that if the development of a mine means that people have to be moved off the min- ing site, then the resettlement and rehabilitation of those people, should be agreed to by the people of the affected community. Such removals should be carefully planned and implemented by the mining company, so that no affected person, group or community has their standard of living, economic, culture and social cohesion diminished as a result. 184 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 185 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises Occidental's Good Neighbor Principles: "Involuntary resettlement should be avoided or mini- to uphold the human, cultural and legal rights of mized where feasible, exploring all viable alternative our neighbors directly impacted by Occidental's project designs." operations and to support efforts to maintain the "Project design should take into account involuntary integrity of their customs, values and traditions; resettlement from the earliest stages of project prepa- to assist our neighbors in developing ways to ration." become self-sufficient and to achieve economic "Persons resettled involuntarily should be provided sustainability without creating dependency; with the following: to serve as a catalyst to help neighboring commu- fair compensation for losses prior to the actual nities identify and prioritize needs and to work move; with the appropriate government agencies to assistance in the move and support during the tran- develop responsive programs; sition period at the new site; and to safeguard our neighbors from any harmful assistance in their efforts to improve or at least impact of our operations; restore their former living standards, income earning to develop methods to resolve potential conflict in capacity and production levels." achieving mutually beneficial agreements with "Community participation in planning and implementing our neighbors. resettlement should be encouraged." "Resettlers should be integrated socially and economi- cally into host communities in order to minimize adverse impacts on these communities." "In specific contracts, management staff, with the assistance of the Corporate Environmental Manager, will: identify situations where involuntary resettlement may occur as a direct consequence of a project dur- ing the preparation of the Site Specific Environmental Management Plan; identify the party or parties legally responsibility for implementing resettlement--the contracting party, government agencies or Odebrecht; ensure that activities under the responsibility of Odebrecht meet the planning and implementation requirements of resettlement; whenever possible under the limitations of contractual terms of each project, identify situations where the process of involuntary resettlement may present sig- nificant deviations from the company's policies; and in cases of significant deviations from the company's policies inform IFC and submit to Odebrecht's Board of Directors an evaluation of the options."ii S O C I O - E C O N O M I C I S S U E S 185 CRS_Annex C 3/3/04 12:16 Page 186 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Land Rights, "Our operations can also have a nega- Resettlement, and tive impact on local communities. For Displacement instance, building new facilities may (Continued) require local residents to be resettled. Our direct neighbours may be subject to noise or other environmental nuisances. We may cause a construction boom when we arrive that drives up local prices and strains services. We are committed to working together with the community to limit these disruptions." Abides by Sullivan Principle of expressing "our support for universal human rights and, particularly, those of our employees, the communities within which we operate and parties with whom we do business." 186 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 187 Transparency International and Social Accountability International Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards Adheres to the World Bank Operational Directive 4.30 on Involuntary Resettlement Universal Declaration (June 1990): (Applicable to both physical and economic displace- of Human Rights ment): "Ensure that the population displaced by a project (UDHR). receives benefits from it. Involuntary resettlement is an integral part of project design and should be dealt with from the earliest stages of project preparation, taking into account the following: involuntary settlement should be avoided or minimized where feasible, exploring all viable alternative project designs; where involuntary settlement is unavoidable, resettlement plans should be developed... conceived and executed as development programs, with resettlers provided sufficient investment resources and opportunities to share in project benefits; displaced persons should be compensated for their losses at full replacement cost prior to the actual move; assisted with the move and supported during the transition period in the resettlement site; and assisted in their efforts to improve their former living standards, income earning capacity, and pro- duction levels, or at least to restore them; community participation in planning and implementing reset- tlement should be encouraged; and resettlers should be integrated socially and economically into host communities." UN Norms: Transnational corporations and other business enterprises shall respect the rights of local communities affected by their activities and the rights of indigenous peoples and communities consistent with international human rights standards such as ILO Convention 169 (Indigenous and Tribal Peoples). They shall particularly respect the rights of indigenous peoples and similar communities to own, occupy, develop, con- trol, protect, and use their lands, other natural resources, and cultural and intellectual property. Indigenous peoples and com- munities shall not be deprived of their own means of subsis- tence, nor shall they be removed from lands which they occupy in a manner inconsistent with ILO Convention 169. Further, they shall avoid endangering the health, environment, culture, and institutions of indigenous peoples and communities in the con- text of projects, including road building in or near indigenous peoples and communities. Transnational corporations and other business enterprises shall use particular care in situations in which indigenous lands, resources, or rights thereto have not been adequately demarcated or defined. S O C I O - E C O N O M I C I S S U E S 187 CRS_Annex C 3/3/04 12:16 Page 188 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Local Economic "Aim is that countries and communities in which it Development operates should benefit directly from its presence-- through the wealth and jobs created, the skills developed within the local population and the invest- ment of its time and money in people rather than things, so that it creates substantial human progress." Will "work toward improvements that are measur- able and contribute to the real, independent growth of communities where we operate." 188 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 189 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "We have a responsibility to be "Seeks to foster sustainable growth "Actively contributes to the improvement of the Strives to strengthen local communi- a good corporate citizen through and social progress through partner- quality of life and socioeconomic development ties through its activities, for example: charitable donations, educa- ships with host communities, govern- of the communities where the Group is present." supports training and education; tional and cultural contributions, ments and NGOs." "Contributes actively to the welfare of the pop- makes an effort to use qualified and and employee participation in ulations and countries where it operates, trying competitive local suppliers of goods community and civic affairs." to identify their real needs that change accord- and services; ing to their development level, and to provide when operating in communities that adequate and efficient solutions to problems lack local capabilities, works with and expectation in order to generate sustain- governments and others to develop able and enduring value. Its final objective is to them; contribute to economic self-sufficiency, to facilitate the transfer or skills and favor the transfer of skills and knowledge, to technology; and promote dialogue with stakeholders while cre- when staffing operations, hires qual- ating and preserving a climate of trust." ified citizens of the communities in "Dedicated to contributing building capacity, which it is operating. improving living conditions and enhancing socio-economic development in the areas in which it operates." Promotes and implements "projects and initia- tives which can develop autonomously and integrate themselves within the social fabric." S O C I O - E C O N O M I C I S S U E S 189 CRS_Annex C 3/3/04 12:16 Page 190 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Local Economic "Our social role as an economic "Takes an active part in improving Companies should implement pro- Development operator involves responsible the communities where it oper- grams for the employment of the local (Continued) action, contributing towards the ates, both through financial con- people. creation of jobs, education, tributions and volunteerism." training and personal develop- "Supports a wide range of organi- ment of our workers, and active zations dedicated to education, support for the society initiatives health and human services, civic in the areas and markets where and community improvement, arts Galp Energia has a presence." and culture, business and eco- "Student's support, with the nomic development, environmen- provision of post-graduate tal protection and other worthy training, providing information endeavors." for schoolwork and oganizing study visits to Galp Energia's installations." 190 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 191 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises Globally, partici- Occidental's Good Neighbor Principles: Contributes to the socio-economic, technological and "Encourage local capacity build- pates "in a number to uphold the human, cultural and legal rights of entrepreneurial development of the sectors and coun- ing through close co-operation of partnerships for our neighbors directly impacted by Occidental's tries in which it is active. with the local community, sustainability operations and to support efforts to maintain the Creates work and development opportunities for peo- including business interests, as focusing on large- integrity of their customs, values and traditions; ple, which includes reinvesting the results achieved. well as developing the enter- scale challenges." to assist our neighbors in developing ways to "Contributing $75,000 to a project of professional for- prise's activities in domestic and Locally, takes become self-sufficient and to achieve economic mation to youngsters that began in April in Matala, foreign markets, consistent with "part in activities sustainability without creating dependency; Hulla province, Angola." the need for sound commercial that concentrate to serve as a catalyst to help neighboring commu- "The AIDS Prevention Program, running since August practice." on the needs of the nities identify and prioritize needs and to work 2002 on all the projects Odebrecht develops in Angola, area in question." with the appropriate government agencies to will expend up to a million dollars. ... Some 100 war "Brought forward a develop responsive programs; disabled Angolans work at Capanda Hydroelectric commitment to our to safeguard our neighbors from any harmful Power Plant construction, most of them landmine vic- operations in impact of our operations; tims.... Odebrecht cooperates with the Ministry of Angola to train and to develop methods to resolve potential conflict in Health as one of its main private partners in the develop a work- achieving mutually beneficial agreements with Vaccination Program Against Poliomyelitis." force consisting our neighbors. mainly of Angolans, "Foreign operations have on-going, active policies who will one day in place to train national employees for jobs at all be able to run our levels to increase local hiring and reduce expatriate operations there staffing. This commitment is demonstrated by the without expatriate existence of formal nationalization policies in a num- assistance. We ber of our international locations. In the foreign believe our countries where Occidental has an operating pres- approach to ence, national staff on average comprise more than develop compe- 90% of Occidental's workforce." tence in and for Angola has boosted our com- petitive situation in the country" (Eivind Reiten: "We have a role to play in building a sus- tainable oil indus- try in Angola"). S O C I O - E C O N O M I C I S S U E S 191 CRS_Annex C 3/3/04 12:16 Page 192 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Local Economic "Wherever we work, we are part of a "Members recognise that Development local community. We will constantly their future is bound up (Continued) look for appropriate ways to contribute with the advancement and to the general well-being of the com- prosperity of thousands of munity and the broader societies who their employees and mil- grant our licence to operate." lions of their consumers. "In 2002, the [Shell] Foundation granted They also appreciate that approximately $10 million to 25 projects the reduction of imbalances and three major initiatives, up from $6.7 in South African society is million in 2001." imperative. Therefore the oil companies devote extra- ordinary effort to helping upgrade communities." 192 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 193 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "Committed to contributing to "Contributes through its activities to value creation, expertise the social and economic develop- development and transfer of ment of [host] countries, particularly experience in the countries in in areas where its activities are which we operate." carried out." Aiming to adopt the recently- Through partnerships, supports local developed guidelines for social development, in particular in the investment as a group-wide areas of healthcare, education and policy. Under the guidelines: economic development. all Statoil-sponsored pro- "These business principles are the jects must accord with UN group's reference point and go principles for development hand-in-hand with the group's ambi- cooperation; tion for continued growth for the to be sustainable, a project benefit of shareholders, customers must build on the commu- and employees, contributing at the nity's own efforts and fit same time to the economic and into national development social development of the countries plans; where it is present." must work through organi- sations with the necessary expertise and capacity in promoting human rights and development in the external arena; and social investment projects should seek to build local capacity in the fields of health, education, human rights and governance. S O C I O - E C O N O M I C I S S U E S 193 CRS_Annex C 3/3/04 12:16 Page 194 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Bribery and Never offers, pays, solicits or accepts a bribe in any Corruption/Facilitation form and prohibits third parties, such as agents and Payments consultants, to do so. "Best action may be to challenge bribery at a senior level and consider exposing the practice in the pub- lic domain." "Any demand for, or offer of, a bribe in whatever form to any employee must be rejected and reported immediately to line management. Employees should be aware that even the perception by others that a gift is in fact a bribe is sufficient to damage the com- pany's reputation." "A local gifts and entertainment policy to include definition of `nominal value' and `reasonable enter- tainment' and a compliance process should be put in place by local management, and agreed with the appropriate Regional or Country President." "In some countries, small facilitating payments, as defined under the US Foreign Corrupt Practices Act, are a normal means of obtaining routine low-level actions and/or approvals by government officials. BP regards such payments as bribes and will not make them." 194 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 195 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "A business should not partici- "The United States Foreign Corrupt "Bribes, illegitimate favors, collusion, pressures, Prohibits bribery and corruption. pate in or condone bribery, Practices Act makes it a crime for either direct or through third parties, requests of "All employees and agents of the money laundering, or other cor- companies, as well as their officers, personal benefits for oneself or others, are pro- Corporation are required to comply with rupt practices; indeed, it should directors, employees, and agents, to hibited." the ethics policy and applicable laws." seek cooperation with others to pay, promise, offer or authorize the "Activities at home and abroad must be carried Strictly observes of all laws applicable eliminate them." payment of anything of value to a for- out honestly, with integrity and in compliance to its business. Companies should "refrain from eign official, foreign political party, offi- with existing laws." Where "the law is permissive, the either seeking or participating in cials of foreign political parties, "Prohibited to pay or offer, directly or indirectly, Corporation chooses the course of the questionable payments or favors candidates for foreign political office or money and material benefits of any kind to third highest integrity." to secure competitive advan- officials of public international organi- parties, whether public officers or private indi- "Local customs, traditions and mores tages." zations for the purpose of obtaining or viduals, in order to influence or remunerate the differ from place to place, and this must retaining business. Similar laws have actions of their office." be recognized. But, honesty is not sub- been, or are being, adopted by other ject to criticism in any culture. Shades countries. Payments of this nature are of dishonesty simply invite demoralizing strictly against policy even if the and reprehensible judgments. A well- refusal to make them may cause [the founded reputation for scrupulous deal- company] to lose business." ing is itself a priceless company asset." Abides by Sullivan Principle of promot- "System of management will not work ing "fair competition including respect without honesty, including honest book- for intellectual and other property rights, keeping, honest budget proposals, and and not offer, pay or accept bribes." honest economic evaluation of projects." "There may be instances in which for- All transactions must be accurately eign officials request or expect pay- reflected in its books and records. ments or gratuities to expedite the Falsification of its books and records or proper performance of "routine gov- the creation or maintenance of any off- ernmental action." No payments of the-record bank accounts is strictly these types may be made without the prohibited. advance approval of the Corporation "Observes the highest standards in Comptroller." ethics." S O C I O - E C O N O M I C I S S U E S 195 CRS_Annex C 3/3/04 12:16 Page 196 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Bribery and "No one may, directly or indi- "The exchange of gifts, meals and Corruption/Facilitation rectly, demand or accept a entertainment is a common prac- Payments (Continued) bribe." tice in business, and can help us "Enterprises should not build better relationships with kick back any portion of a customers, vendors and other contract payment to business allies. Although world employees for the other customs about gifts and enter- contracting party, or tainment vary, one principle is utilize other techniques, clear and common: no gift, favor such as subcontracts, pur- or entertainment should be chase orders or consulting accepted or provided if it will agreements, to channel obligate, appear to obligate or is payments to government intended to obligate or unduly officials, to employees of influence the recipient." the other contracting party, their relatives or business associates." 196 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 197 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "To preserve Its "business shall be conducted in accordance with "Enterprises should not, directly their indepen- all applicable laws of the US and foreign jurisdic- or indirectly, offer, promise, give dence and tions and in a manner that will always reflect a high or demand a bribe or other integrity, employ- standard of ethics." undue advantage to obtain or ees are not All transactions involving the company assets shall retain business or other allowed to give or be properly recorded. improper advantage. Nor should receive money or "No employee, agent or representative shall pay or enterprises be solicited or other forms of offer any bribe or give or offer anything of value to expected to render a bribe or payment in busi- any public official or any candidate for public office other undue advantage." ness connec- with the intent to influence any official act." Enterprises should "not offer, tions. Any gifts "Except as permitted by law, no company funds or nor give in to demands, to pay shall be modest assets shall be contributed to any political party or public officials or the employees and in line with organization or to any individual who either holds of business partners any portion locally accepted public office or is a candidate for public office." of a contract payment." good business "No contract, agreement, arrangement, payment, practice". gift or entertainment, domestic or foreign, shall be Restricts facilita- offered, promised, agreed, paid or received that tion payments. would violate any applicable US or foreign law." "Under no circumstances should any gift or enter- tainment ever be offered, given, provided or accepted by any employee, immediate family mem- ber of an employee or agent unless such gift or entertainment: is not a cash gift; is consistent with customary business practices; is not excessive in value; cannot be construed as a bribe or payoff; or does not violate applicable laws or regulations and conforms to all other requirements of the Code of Conduct." S O C I O - E C O N O M I C I S S U E S 197 CRS_Annex C 3/3/04 12:16 Page 198 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Bribery and The direct or indirect offer, payment, "The founding members are Corruption/Facilitation soliciting and acceptance of bribes in accustomed to working to Payments (Continued) any form are unacceptable practices. agreed standards when To avoid inadvertently becoming dealing with sensitive mat- involved with corrupt practices through ters of political donations, the use of intermediaries Shell compa- and in combating commer- nies in 82 countries operate a proce- cial blackmail, bribery and dure to ensure that the use of corruption." intermediaries does not compromise business integrity. Does not sanction illegal payments of any kind. Policy not to make facilitation pay- ments and seeks to ensure that its agents, contractors and suppliers do not make them either. 198 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 199 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards Does not accept corrupt "The giving or receiving of "An enterprise should develop a OECD Convention on Combating Bribery. behaviour. gifts or entertainment must [Programme for Countering Bribery]... UN Convention Against Corruption. Expressly prohibits receiv- remain within acceptable which should, clearly and in reasonable UN Norms: Transnational corporations "shall not offer, ing, offering or soliciting limits both as regards what is detail, articulate values, policies and promise, give, accept, condone, knowingly benefit from, or bribes. All forms of corrup- customary and as regards procedures to be used to prevent bribery demand a bribe or other improper advantage. Nor shall they tion are regarded as unac- any anti-corruption legisla- from occurring in all activities under its be solicited or expected to give a bribe or other improper ceptable, even facilitation tion. In case of doubt, every effective control." advantage to any government, public official, candidate for payments--small sums employee must obtain the "The Programme should be consistent elective post, any member of the armed forces or security typically paid to low-level approval of his or her man- with all laws relevant to countering forces, or any other individual or organization." officials to expedite tasks agement. In no case may an bribery in all the jurisdictions in which UN Norms: Transnational corporations "shall recognize and they are supposed to carry employee solicit a gift or an the enterprise operates...." respect applicable norms of international law; national laws; out anyway--must be invitation." "The enterprise should prohibit the offer, regulations; administrative practices; the rule of law; the pub- eradicated. Recognizes gift, or acceptance of a bribe in any lic interest; development objectives; social, economic, and that such payments are form, including kickbacks, on any portion cultural policies including transparency, accountability, and sometimes unavoidable, of a contract payment, or the use of prohibition of corruption; and authority of the countries in but they cannot be con- other routes or channels to provide which the enterprises operate." doned. If they are paid, improper benefits to customers, agents, Commentary on UN Norms: Transnational corporations and company requires that contractors, suppliers or employees of other business enterprises shall enhance the transparency of they are accurately any such party or government officials." their activities in regard to payments made to governments recorded as such in our "The enterprise should also prohibit an and public officials; openly fight against bribery, extortion, books and not disguised as employee from arranging or accepting a and other forms of corruption; and cooperate with State something else. bribe or kickback from customers, authorities responsible for combating corruption. agents, contractors, suppliers, or [In June 2002, Transparency International joined more than employees of any such party or from 30 other NGOs in launching Publish What You Pay Campaign, government officials, for the employee's calling on the G7 nations to take leadership and promote benefit or that of the employee's family, transparency worldwide. A central action will be for stock friends, associates or acquaintances." market regulators to require oil, gas and mining companies to "The enterprise should ensure that char- publish net taxes, fees, royalties and other payments to all itable contributions and sponsorships national governments as a condition for being listed on inter- are not being used as a subterfuge for national stock exchanges and financial markets.] bribery." [TI's African national chapters also adopted the Nyanga "The enterprise should publicly disclose Declaration, calling on the members of the UN to adopt an all its charitable contributions or spon- international treaty to expedite the tracing, recovery and sorships." repatriation of wealth stolen from developing countries and "Recognising that facilitation payments transferred abroad.] are a form of bribery, the enterprise should work to identify and eliminate them." S O C I O - E C O N O M I C I S S U E S 199 CRS_Annex C 3/3/04 12:16 Page 200 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Political Never makes political contributions, whether in cash Contributions or kind, to any political party or to organisations or individuals whose activities are designed to promote the interests of political parties. Since April 2002, "stopped making corporate politi- cal contributions anywhere in the world." 200 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 201 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation Recognize government's legiti- "Exercises its fundamental right and "Does not give any direct or indirect contribu- "Does not make contributions to politi- mate obligation to the society at responsibility to influence [government] tions in whatever form to political parties, cal candidates or political parties large and support public poli- decisions by participating in public pol- organizations, committees or trade unions, nor except as permitted by applicable laws cies and practices that promote icy debates; by directly and indirectly to their representatives and candidates, except and authorized by the Board of human development through lobbying public bodies and officials; those specifically contemplated by applicable Directors." harmonious relations between and by supporting candidates, parties laws and regulations." "Considers that registering and voting, business and other segments of and campaigns that further [the com- contributing financially to the party or society; respect democratic pany's] viewpoints." candidate of one's choice, keeping institutions and promote them "Where and to the extent permitted, informed on political matters, serving in wherever practicable. makes political contributions to appro- civic bodies, and campaigning and priate candidates." officeholding at local, state, or national levels are highly important rights and responsibilities of the citizens of a democracy." S O C I O - E C O N O M I C I S S U E S 201 CRS_Annex C 3/3/04 12:16 Page 202 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Political "Contributions to political "Certain contributions may be Contributions parties or committees or to prohibited by Company Policy, (Continued) individual politicians may even if otherwise permitted by only be made in accordance applicable law. Any proposed with the applicable law, and contribution should be arranged all requirements for public through Governmental Affairs." disclosure of such contribu- tions shall be fully complied with. All such contributions must be reported to senior corporate management." 202 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 203 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "Does not give "The direct or indirect use of the company's funds Prohibits any Member "to make any illegal, improper or Enterprises should "not make financial contri- or assets for political contributions is prohibited questionable payment to a public official or the like, illegal contributions to candi- butions to politi- unless authorized by the Board of Directors." whether directly or through third parties." dates for public office or to polit- cal parties," but "Lobbying in any form on behalf of the company is "Forbidden to give gifts, benefits or even pay travel ical parties or to other political this does not pre- prohibited unless approved by the Occidental or expenses for public officials and their families with a organisations. Contributions clude "supporting Segment Chief Executive Officer in consultation with view to influencing decisions." should fully comply with public political views in the appropriate Compliance Officer." "Everyone must be capable of determining what forms disclosure requirements and the interest of the "Except as permitted by applicable laws and autho- of entertainment and leisure may be legitimately should be reported to senior company." rized by Occidental's Board of Directors, no funds or offered to public officials and the like, while adhering management." assets (including property, services and use of facil- to the guidelines herein and the laws and regulations ities) shall be contributed to any political organiza- of the country or region in which they are present. If tion or to any individual who holds or is a candidate there is any doubt as to the propriety of an action being for public office." considered, Members must seek their Leader's Except for company-approved political action com- advice." mittees, business groups and trade associations, the "Being unaware that an action was questionable due company shall not support any organization that to ignorance or omission is not an acceptable raises funds for political purposes. defense." Encourages "employees to participate in the political "Campaign contributions must be made in accordance process on their own time. Employees have a right to with the applicable laws, with the prior approval of the make political contributions in their own name and President and CEO of Odebrecht S.A. Any questions from their own assets. Employees will not be required regarding the legality of a given contribution must be by the Company to make any political contributions." submitted to the Company's Officer Responsible for Legal Affairs." "In accordance with its entrepreneurial principles and values, the Odebrecht Group is apolitical and is not aligned with any political party. Therefore, it must not be involved in or affected by its Members' political activities. Nevertheless, the Group reaffirms the importance of its Members' full exercise of their civil rights, which include the right to free expression and the individual choice to engage in politics, join a party and be a candidate for public or political office." "Members who choose to stand for political or public office must not use their position with the Group or any of the Group Companies' resources and means to do so. Instead, they must leave their jobs and resign from the Group." S O C I O - E C O N O M I C I S S U E S 203 CRS_Annex C 3/3/04 12:16 Page 204 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Political Does not make payments to political "The founding members are Contributions parties, organisations or their repre- accustomed to working to (Continued) sentatives or take any part in party agreed standards when politics dealing with sensitive mat- Does not make donations to political ters of political donations, parties and treats this issue in the and in combating commer- same way as Bribery and Corruption. cial blackmail, bribery and corruption." 204 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 205 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards Does not support any political "Every employee who could be con- "The enterprise, its employees or agents UN Norms: Transnational corporations and party or candidate. This sidered as a representative of the should not make direct or indirect contributions other business enterprises shall recognize and means that we make no politi- Group is required to abstain from to political parties, organisations or individ- respect applicable norms of international law; cal contributions. However, political activity in the countries in uals engaged in politics, as a way of obtain- national laws; regulations; administrative prac- does reserve the right to par- which he or she is not entitled to ing advantage in business transactions." tices; the rule of law; the public interest; devel- ticipate in public debates exercise civic rights and in which the "The enterprise should publicly disclose all opment objectives; social, economic, and where this is in its business Group is present. Employees must its political contributions." cultural policies including transparency, interest. take care not to do anything which accountability, and prohibition of corruption; would be contrary to such countries' and authority of the countries in which the traditions or cultures." enterprises operate. S O C I O - E C O N O M I C I S S U E S 205 CRS_Annex C 3/3/04 12:16 Page 206 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Financial "An open door policy on "The decision making process for the selection of Transparency company operations [is] new agents, advisors and other third parties should a part of the petroleum be documented to provide an audit trail." industry's overall activi- "Will be open about our actual performance - ties seeking to promote whether good or bad - believes that this not only energy efficiency and enhances its accountability, but also acts as a stim- responsible work prac- ulus for improvement." tices leading to a pollu- "Holds no secret or unrecorded funds of money or tion free environment." assets." "Produces financial reports that are reliable, accu- rate and timely, and ensures that all transactions are properly handled and reported and that assets are financially safeguarded." Conforms with the requirements of the Group to meet its UK and US reporting requirements as expressed in the Group Reporting Manual and UK Accounting Standards. Meets all local statutory and fiscal reporting require- ments. "Unrestricted access to staff and documents will be provided (subject to legal constraints) to Internal and External Audit on request." 206 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 207 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "While accepting the legitimacy "To ensure the integrity of our account- "Accounting transparency is based on the use All transactions must be accurately of trade secrets, businesses ing records, all entries to books must of true, accurate and complete information for reflected in its books and records. should recognize that sincerity, be prepared with accuracy and hon- construing entries in the books of accounts. Falsification of its books and records or candor, truthfulness, the keeping esty. They must also be supported by Each employee shall cooperate in order to the creation or maintenance of any off- of promises, and transparency adequate documentation to provide a have events properly and timely registered in the-record bank accounts is strictly contribute not only to their own complete, accurate and auditable the books of accounts." prohibited. credibility and stability but also record of the transactions they "For each transaction the proper supporting to the smoothness and efficiency describe. " evidence has to be maintained in order to: of business transaction." Believes it to be "vital that no fund, facilitate registration of the accounting; asset, liability, revenue or expense be identify the different degrees of responsibil- concealed or incompletely recorded in ity; and any situation or for any purpose." provide an accurate representation of the transaction so as to avoid any errors in inter- pretation of the facts." "Policy to disseminate, at very level of its orga- nization, a culture characterized by an aware- ness of the existence of controls and a control-oriented mentality. A positive attitude towards control is to be achieved in order to increase its efficiency." S O C I O - E C O N O M I C I S S U E S 207 CRS_Annex C 3/3/04 12:16 Page 208 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Financial "Adopts, internally and vis-à-vis "All financial transactions "Companies should have regular and Transparency the community, a posture of must be properly and fairly independent audits of their operations (Continued) responsibility and transparency." recorded in appropriate carried out by independent auditors, books of account available which include representatives nomi- for inspection by boards of nated by relevant stakeholders." directors, if applicable, or a corresponding body, as well as auditors." 208 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 209 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "Encourages Accounting standards and applicable US laws "The accuracy and disclosure of Group Companies' "Enterprises should ensure that transparency and require that all transactions and dispositions of financial statements are essential because they enable timely, regular, reliable and rele- providing timely assets "must be properly recorded in all the books market agents to accurately assess the Group's busi- vant information is disclosed information so that and accounts, and that Occidental must establish ness performance and prevent liability exposure." regarding their activities, struc- the outside world and maintain a system of internal accounting con- "Laws, standards and generally accepted accounting ture, financial situation and per- can continuously trols sufficient to provide reasonable assurance that practices must be strictly observed in order to produce formance." follow our efforts transactions are properly executed and recorded." consistent records and reports that can be used to "Enterprises should apply high and form their Must "make and retain books, records and accounts publicize and evaluate the Group's operations." quality standards for disclosure, own opinions." that, in reasonable detail accurately and fairly accounting, and audit." reflect the company's transactions and the disposi- tion of its assets and conform to applicable legal requirements and generally accepted accounting principles as applied in the U.S." Shall not: "establish or use any secret or off-balance sheet fund or account for any purpose; use corporate funds to establish or use any num- bered bank account that is not identified by the name of the owner; or establish or use any offshore corporate entity for any purpose other than a legitimate Company business purpose." "The documentation embodying every contract, agreement and arrangement shall fully, clearly and completely reflect the intention of the contracting parties as to all material items and issues that are the subject matter of the contract, agreement or arrangement, including relevant specifics regarding services or goods to be provided and fees to be paid." S O C I O - E C O N O M I C I S S U E S 209 CRS_Annex C 3/3/04 12:16 Page 210 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Financial "More and more companies in all sectors "All business transactions on behalf of Must maintain "appropri- "Core purpose is to ensure Transparency are working to enhance their public the Shell company must be reflected ate records to demon- transparency and the open (Continued) accountability or credibility by improving accurately and fairly in the accounts of strate conformance to good governance of the their transparency, reporting, and stake- the company in accordance with estab- the requirements of this industry." holder engagement efforts." lished procedures and be subject to standard." Oil pricing systems "should audit." be transparent and under- Has comprehensive corporate informa- stood by the public." tion programmes and provides full rele- vant information about their activities to legitimately interested parties, subject to any overriding consideration of busi- ness confidentiality and costs. "Publishing how much governments receive each year from all these sources-- making revenues transparent--is a useful way to help them manage these funds better." Supports efforts such as the UK Government's EITI, the Publish What You Pay Campaigniii and work by the World Bank and others to promote transparency of oil and gas revenues. Shell companies in 70 countries have hotline numbers or whistle-blowing schemes to allow employees to raise concerns without fear of reprisal. 210 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 211 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "Makes its policy available to The Group regularly provides to all "The enterprise should maintain accurate UN Norms: Transnational corporations "shall the public, openly reports its its shareholders full and transparent books and records, available for inspection, not offer, promise, give, accept, condone, performance and uses a com- information and is attentive to their which properly and fairly document all knowingly benefit from, or demand a bribe or petent and independent body concerns, notably through its financial transactions. The enterprise other improper advantage. Nor shall they be to verify its reported data." Shareholders' Committee. should not maintain off-the-books solicited or expected to give a bribe or other "The accounts covering our accounts." improper advantage to any government, public revenues and expenses in "To be effective, the [enterprise's official, candidate for elective post, any mem- Angola are already in the pub- Programme for Countering Bribery] should ber of the armed forces or security forces, or lic domain, lodged with the rely on employees and others to raise con- any other individual or organization." Norwegian Register of cerns and violations as early as possible. Commentary on UN Norms: Transnational cor- Company Accounts at To this end, the enterprise should provide porations and other business enterprises shall Bronnoysund and available on secure and accessible channels through assure that the information in their financial enquiry." which employees and others should feel statements fairly presents in all material able to raise concerns and report violations respects the financial condition, results of ("whistle-blowing") in confidence and with- operations, and cash flows of the business. out risk of reprisal." "The enterprise should establish effective internal and external communication of the Programme." "The enterprise should, on request, publicly disclose the management systems it employs in countering bribery." "The enterprise should be open to receiving communications from relevant interested parties with respect to the Programme." S O C I O - E C O N O M I C I S S U E S 211 CRS_Annex C 3/3/04 12:16 Page 212 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Competition and "Supports the creation of open and fair competition." Pricing "Will not condone acts by employees that contravene com- petition or antitrust law, even where those concerned may have believed the acts to be to the benefit of the company." "Encourages employees to seek counsel in areas that may be affected by US anti-boycott laws, foreign trade controls, and export control regulations." Voluntary Initiatives Supports the following: AA1000AssuranceStandardthatwaspublishedbyAccountAbility Voluntary Principles on Security and Human Rights UN Global Compact UN Universal Declaration of Human Rights Extractive Industries Transparency Initiative (EITI) and the Publish What You Pay Campaign Conforms with the requirements of the Group to meet its UK and US reporting requirements as expressed in the Group Reporting Manual and UK Accounting Standards. "Adheres to US SEC 1976 report to US Congress on key indi- cators of potentially inappropriate activity that should war- rant scrutiny and precautions." Respects 2000 ILO `Tripartite Declaration of Principles concern- ing Multinational Enterprises and Social Policy' and the 2000 Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. 212 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 213 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation "To avoid frictions and to pro- "Policy to conduct its business in accordance with US "Pursues its business success on markets by All directors, officers, and mote free trade, equal condi- antiboycott laws and regulations." offering quality products and services under employees shall, in carry- tions for competition, and fair While it competes aggressively in its many business competitive conditions while respecting the ing out their duties to the and equitable treatment for all activities, its "efforts in the marketplace must be con- rules protecting fair competition." Corporation, comply with participants, businesses ducted in accordance with the letter and spirit of the "Committed to actively contribute to promoting the antitrust and competi- should respect international applicable antitrust laws. Many of the countries in the quality of life... while conducting its busi- tion laws of the United and domestic rules." which it does business also have antitrust, competition ness activities in internal and external markets States and with those of Businesses should support or antimonopoly laws that the company must observe." according to standards that are compatible with any other country or General Agreement on Tariffs "Must always make its pricing decisions indepen- fair commercial practice." group of countries which and Trade and the World dently of its competitors." are applicable to the Trade Organization, and "May not agree with a competitor to divide customers Corporation's business. "cooperate in efforts to pro- or territories, or to refrain from selling a certain prod- mote the progressive and judi- uct or service in any geographic region or to any cat- cious liberalization of trade." egory of customer." Businesses should "foster "Contacts with competitors must be kept to an open markets for trade and absolute minimum." investment and promote com- "Some other activities that raise antitrust issues are dis- petitive behavior that is crimination in terms and services offered to customers, socially and environmentally exclusive dealing arrangements with customers or sup- beneficial and demonstrates pliers, and tie-in sales ("tying"). Tying occurs when a mutual respect among buyer is required as a condition of purchasing one prod- competitors." uct to also purchase a second, distinct product. No pro- grams involving these activities should be implemented without first consulting a company attorney." Endorser of The Global Sullivan Principles. Adheres to the UN Global Compact and its nine Participates in dialogue Participated in and supported the process of develop- principles in the field of human rights, labor stan- on Voluntary Principles on ing the Voluntary Principles on Security and Human dards and environmental protection. Security and Human Rights. Endorser of : Rights. UN UDHR Lloyd's Register of Quality Fundamental Conventions of the ILO Assurance attests that OECD Guidelines on Multinational Enterprises OIMS meets the intent and requirements of ISO Supports initiatives aimed at promoting the respect 14001 (the recognized and adoption of international standards and guide- international standard for lines such as Global Compact and OECD Local environmental manage- Economic and Employment Development Program. ment systems). Participates in industry led associations, including: CSR Europe, Oil & Gas Producers, International Petroleum Industry Environmental Conservation Association, Business in the Community, and Water Environment Federation. S O C I O - E C O N O M I C I S S U E S 213 CRS_Annex C 3/3/04 12:16 Page 214 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Competition and Pricing (Continued) Voluntary Initiatives (Continued) 214 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 215 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises "The European Union Competition Conducts its business activities in accordance with all applica- Fair competition is the cor- Enterprises should, within the Compliance Program's aim is to avoid ble US antitrust, competition and trade practice laws, as well as nerstone of all the its opera- framework of applicable laws situations in which Hydro may be in the laws in the countries where it operates. tions. "The competitiveness and regulations, conduct their breach of the competition rules, and Prohibits: of the Group's entrepre- activities in a competitive man- to avoid unnecessary suspicion "engaging in any arrangement with competitors that estab- neurial actions is exercised ner and refrain from entering among competition authorities." lishes prices, terms, shipping arrangements or transportation and assessed on the basis into or carrying out anti-compet- "The Program includes measures charges; of this principle." itive agreements among com- designed to: allocating or limiting production or customers or to divide a "No comments should be petitors to: provide for the knowledge nec- market or territory with a competitor; made that might negatively fix prices; essary to avoid breaches of com- engaging in boycotts, bid-rigging (requesting or giving com- affect a competitor's image, make rigged bids (collusive petition law, and plementary bids, where there is no intent to compete) or any and rumors about competi- tenders); reinforce a positive and proactive other forms of collusive bidding; tors must not be spread." establish output restrictions attitude towards compliance." entering into arrangements with competitors to exclude a third "Competitors must be or quotas; or treated with as much Additional elements of the Program party from any line of business; and share or divide markets by respect as the Company include: entering into any arrangement with a supplier under which it allocating customers, suppli- agrees not to sell to Occidental's competitors." would expect to receive. It ers, territories, or lines of a compliance manual; is expressly forbidden to commerce. appointed Competition pass on information owned Compliance officers; and by the Odebrecht Group to courses and seminars conducted its competitors." by competition lawyers from the Corporate Legal Department. UN Global Compact Endorses the Global Sullivan Principles of Corporate Social Endorses the Global FTSE4 Good Index Responsibility. Sullivan Principles of Using ISO 14001 as a guideline to In 1998, first company in Ecuador and the second in Latin Corporate Social enhance environmental manage- America, to receive the ISO 14001 for its environmental manage- Responsibility. ment systems. ment systems. The certification was renewed in 2001. Participated in and supported the In 2001, first company in Oman to receive the ISO 14001 certification. process of developing the In 2002, first company in Ecuador to have its safety program certified Voluntary Principles on Security OHSAS 18001. Oxy Oman received OHSAS 18001 certification in 2001. and Human Rights. OxyChem has 18 work locations certified as OSHA Star sites, the highest US government honor for excellence in safety programs. Environmental Resource Management completed a three-year review of the Occidental's HES audit and assessment programs and concluded, "Occidental has implemented an effective Health, Environment, Safety and Process Risk audit program that clearly ranks in the upper quartile of companies in the chemical manufacturing and the oil and gas industries." Signatory of the Voluntary Principles on Security and Human Rights in conjunction with the US State Department and the British Foreign Service. S O C I O - E C O N O M I C I S S U E S 215 CRS_Annex C 3/3/04 12:16 Page 216 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Competition and "Shell companies support free enter- "Believes that free market Pricing (Continued) prise. They seek to compete fairly and forces should set the prices ethically and within the framework of of all petroleum products. applicable competition laws; they will However, it accepts that not prevent others from competing this will only happen once freely with them." certain social objectives spelt out by the government have been met." Voluntary Initiatives "We recognize our responsibility to work Global Sullivan Principles (Continued) with the public, the government, and oth- OECD Guidelines for Multinational ers to develop and to use natural Enterprises resources in an environmentally sound UN Global Compact manner while protecting the health and Voluntary Principles on Security and safety of our employees and the public." Human Rights UK Government's EITI and the Publish What You Pay Campaign 216 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 217 Transparency International and Social Accountability International, Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards UN Norms: Transnational corporations "shall act in accordance with fair business, marketing, and advertising practices and shall take all nec- essary steps to ensure the safety and quality of the goods and services they provide, including observance of the precautionary principle." Commentary on UN Norms: "A transnational corporation or other business enterprise shall encourage the development and maintenance of fair, transparent, and open competition by not entering into arrangements with competing businesses to either directly or indirectly fix prices, divide territories, or create monopoly positions." UN Conference on Trade and Development Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Business Practices. Observes and promotes basic standards for Adheres to the princi- human rights, labour rights and the environ- ples of the UDHR. ment, as expressed in the UN Global Compact Supports the princi- and The Global Sullivan Principles. ples of the ILO and, in "The experience of tri-sector partnerships in particular, to those the field and stakeholder engagement through concerning the use of the UN Global Compact have spurred increased child labor. cooperation between ourselves and a select Supports the OECD's few Norwegian NGOs and international human- Guidelines for itarian and development organisations." Multinational "Has been engaged for several years in a dia- Enterprises. logue with Amnesty International about the human "Recently joined the rights challenges facing the oil and gas industry. Global Compact, an Last year, it signed an agreement with Amnesty initiative launched by International Norway on human rights education." the UN Secretary- Voluntary Principles on Security and Human General." Rights EITI and the Publish What You Pay Campaign S O C I O - E C O N O M I C I S S U E S 217 CRS_Annex C 3/3/04 12:16 Page 218 Amnesty International, American Petroleum Human Rights Principles Australian Institute Institute (API) for Companies of Petroleum (AIP) BP p.l.c. Third Party "Companies should establish "Considers the human rights record of suppliers in Applicability procedures to ensure that all the procurement process." operations are examined for their "Fosters similar standards in all third parties who impact on human rights, and act with us or on our behalf." safeguards to ensure that com- Prohibits third parties, such as agents and consul- pany staff are never complicit in tants, to offer, pay, solicit or accept a bribe in any human rights abuses." form. "All companies should ensure "Where a company, organisation or person acts or that their policies and practices might reasonably be perceived to act on behalf of prohibit the use of chattel slaves, BP, that company, organisation or person will be forced labour, bonded child expected to conduct business in accordance with laborers or coerced prison the company's commitment and policy expectations labour. This should include on Ethical Conduct or with a code of conduct that is ensuring that suppliers, partners, at least as rigorous." or contractors do not use such Provides and explains the impact of its commitment labour." and policy expectations on Ethical Conduct to third parties or intermediaries before it engages them to act on BP's behalf. "Will not employ agents to carry out actions that conflict with these commitments." "In joint operations, will apply these commitments where we are operators; where we are not, we will seek to influence our partners such that the joint operation adopts similar commitments." "Will assure ourselves that our contractors' and others' management systems are compatible with our Commitment to HSE Performance." Seeks partners whose policies are consistent with BPs. Makes contractors and suppliers aware of BPs commitments and expectations, and of their respon- sibilities in implementing them. 218 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 219 Caux Roundtable (The), Principles for Business ChevronTexaco Corporation Eni S.p.A. Exxon Mobil Corporation Companies should "seek, Abides by Sullivan Principle of "pro- "In dealing with third parties, employees shall: encourage, and prefer suppliers moting the application of these princi- properly inform all third parties about the and subcontractors whose ples by those with whom we do commitments and duties contained in the employment practices respect business." Code; human dignity." require the third parties to respect the obliga- tions in the Code relevant to their activities; and adopt proper internal actions and, if the mat- ter comes within the limits of the employee's own responsibilities, also external actions, in the event that any third party should fail to comply with the Code." "External collaborators (including consultants, representatives, agents, brokers etc.) are required to comply with the Codes' principles. To this purpose, in accordance with their responsibilities, employees shall make sure that an explicit commitment to respect the principles of the Code of Practice be included in contracts with outside collaborators." "Employees shall follow internal procedures con- cerning selection and relations with suppliers." S O C I O - E C O N O M I C I S S U E S 219 CRS_Annex C 3/3/04 12:16 Page 220 Mineral Policy Institute (MPI), International Chamber Principles for the Conduct of Company Galp Energia, SGPS, S.A. of Commerce (ICC) Marathon Oil Corporation Operations within the Minerals Industry Third Party "Promote the adoption of "Should deal honestly with our Companies should "look into the Applicability these principles by contrac- suppliers and contractors." human rights records of other parties (Continued) tors acting on behalf of the Believes "in doing business with when negotiating joint ventures and enterprise, encouraging and, those who embrace and demon- contracts." where appropriate, requiring strate high standards of business improvements in their prac- conduct. Will not look favorably tices to make them consis- on suppliers that have a history of tent with those of the violating the law, including envi- enterprise; and to encourage ronmental, employment and the wider adoption of these safety laws." principles by suppliers." "External business partners that "Companies should encour- knowingly seek to have Company age their suppliers to abide employees violate our Code of by and apply the same busi- Business Conduct will be subject ness principles that they to appropriate sanctions, includ- themselves uphold, thereby ing the possible cancellation of all promoting good practice current and future contracts." throughout the supply chain." 220 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 221 Organisation for Economic Co-operation Occidental and Development (OECD), Guidelines Norsk Hydro ASA Petroleum Corporation Odebrecht S.A. for Multinational Enterprises Expects all those who do business with the com- "Enterprises should, where pany to follow the ethical and legal standards set practicable, encourage compati- forth in its Code of Business Conduct. ble principles of corporate responsibility among business partners while recognizing that there are practical limitations on the ability of enterprises to influ- ence the conduct of their busi- ness partners." S O C I O - E C O N O M I C I S S U E S 221 CRS_Annex C 3/3/04 12:16 Page 222 Regional Association of Oil and Social South African Natural Gas Companies in Latin America Accountability Petroleum Industry and the Caribbean (ARPEL) Shell International Limited International, SA8000 Association (SAPIA) Third Party "Shell companies recognize an area of Must establish and main- Applicability responsibility to those with whom we tain appropriate proce- (Continued) do business with--to seek mutually dures to evaluate and beneficial relationships with contrac- select suppliers/ subson- tors, suppliers and in joint ventures and tractors (and, where to promote the application of these appropriate, sub-suppli- principles in so doing. The ability to ers) based on their ability promote these principles effectively to meet the requirements will be an important factor in the deci- of this standard. sion to enter into or remain in such relationships." "We also attempt to screen our con- tractors and suppliers in those coun- tries where children are known to work." 222 O I L A N D G A S S E C T O R CRS_Annex C 3/3/04 12:16 Page 223 Transparency International and Social Accountability International Statoil ASA TOTAL S.A. Business Principles for Countering Bribery International Standards "We make our attitudes known "Favors the selection of its industrial "The enterprise should apply its UN Norms: "Each transnational corporation or to the authorities, partners, and business partners on the basis [Programme for Countering Bribery] in its other business enterprise shall apply and incor- suppliers and other interested of their ability to comply with its policy dealings with subsidiaries, joint venture porate these Norms in their contracts or other parties." on safety, health, environment and partners, agents, contractors and other arrangements and dealings with contractors, Seeks cooperation on best quality." third parties with whom it has business subcontractors, suppliers, licensees, distribu- practice with the authorities, "Routinely requires our business relationships." tors, or natural or other legal persons that enter companies and others who partners, subcontractors and suppli- "The enterprise should conduct due dili- into any agreement with the transnational cor- share same views. ers to establish their own codes of gence before entering into a joint venture." poration or business enterprise in order to "Corporate staff support the conduct, if they have not already "The enterprise should ensure that sub- ensure respect for and implementation of the business areas by providing done so, and to respect ours." sidiaries and joint ventures over which it Norms." reputational due diligence ser- maintains effective control adopt its vices prior to agreements Programme. Where an enterprise does not being established with part- have effective control it should make known ners, suppliers, agents and its Programme and use its best efforts to consultants." monitor that the conduct of such sub- Expects suppliers to adhere to sidiaries and joint ventures is consistent the same standards. Those with the Business Principles." who fail to meet such expecta- "The enterprise should undertake due dili- tions will generally be weeded gence in evaluating major prospective con- out through the pre-qualifica- tractors and suppliers to ensure that they tion process. Basic require- have effective anti-bribery policies." ment is that those who do work "The enterprise should make known its for use should have guidelines anti-bribery policies to contractors and sup- for business ethics and con- pliers. It should monitor the conduct of flicts of interest. In some major contractors and suppliers and should cases, the supplier may also have a right of termination in the event that be asked to sign a written they pay bribes." statement of adherence to Statoil's ethical guidelines. S O C I O - E C O N O M I C I S S U E S 223 CRS_Annex C 3/3/04 12:16 Page 224 Endnotes i The reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. ii The reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. iiiSee www.publishwhatyoupay.org 224 O I L A N D G A S S E C T O R CRS_Annex D 3/3/04 12:16 Page 225 D A N N E X Mining Sector Labor and Human Rights Standards Companies/Organizations: Issues Examined: Alcan, Inc. General Policy and Strategy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226-231 Alcoa, Inc. Anglo American p.l.c. Forced Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226-231 Australian Parliament Child Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232-237 Barrick Gold Corporation Wages, Benefits, and Terms of Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232-237 BHP Billiton Limited CEMEX, S.A. de C.V Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238-243 Freeport-McMoRan Copper & Gold Inc. Non-Discrimination and Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238-243 International Council on Mining and Metals Harassment, Abuse, and Disciplinary Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . 244-249 Mineral Policy Institute (MPI)­Principles for the Conduct of Company Operations within the Minerals Industry Freedom of Association and Collective Bargaining . . . . . . . . . . . . . . . . . . . . . . 244-249 Mining Association of Canada (MAC) Labor/Management Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250-255 National Mining Association (NMA) Newmont Mining Corporation Training and Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250-255 Noranda Inc. Security Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256-261 Norsk Hydro ASA Monitoring and Compliance Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262-267 Phelps Dodge Corporation Placer Dome Inc. Rio Tinto Group Silangan Mindanao Exploration Company Teck Cominco Limited Union Cement Corporation WMC Resources Ltd. International Standards 225 CRS_Annex D 3/3/04 12:16 Page 226 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii General Policy and "Alcan is committed to applying best man- Strategy Statement agement practices in all the countries where we operate. In many instances such practices can go well beyond local legal requirements in terms of ensuring human rights." Forced Labor "We are unequivocally opposed to forced or "We believe that people should work because "We will not tolerate inhumane treatment of child labor. they want or need to, not because they are forced employees, including any form of forced Our Code clearly states that Alcan does not to do so. We prohibit the use of prison labor, labor, physical punishment or other abuse." hire or approve of child or forced labor in forcibly indentured labor, bonded labor, slavery or any form (which includes by our suppliers), servitude." in any country in which we operate." 226 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 227 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "Our mines offer opportunities for "Activities and operations are con- significant community development. ducted in an ethical manner that sup- We believe that mining development, ports fundamental human rights, working with local communities and respects the traditional rights of indige- host countries, can create lasting, nous peoples and values their cultural shared benefits while respecting cul- heritage." tural heritage. Barrick is committed "Systems are in place to ensure that to engaging with communities, rec- employees and contractors are familiar ognizing opportunities and imple- with and abide by the Articles of the menting effective strategies to United Nations (UN) Universal realize community improvements." Declaration of Human Rights (UDHR)." "An overseas corporation must not "Wherever we operate we will...sup- use or obtain the benefit of any port the fundamental human rights of forced or compulsory labor." employees, contractors and the commu- nities in which we operate." The company states that it is committed to concepts such as no forced labor in a manner consistent with the UN UDHR as well as the company's Health, Safety, Environment, and Community (HSEC) Management Standards. The company has reaffirmed its commit- ment to the UN Global Compact. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 227 CRS_Annex D 3/3/04 12:16 Page 228 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv General Policy and The company named Judge MPI holds that "[c]ompanies must observe MAC states that it Strategy Statement Gabrielle Kirk McDonald as not only the laws applicable in the countries "[r]espect human (Continued) Special Counsel to the in which they operate but also International rights and treat those Chairman on Human Rights. Human Rights law, which includes require- with whom we deal ments which must be met not only by states fairly and with dignity." but by other entities, regardless of whether such laws have been ratified by the states within which companies operate." "Mining companies must have a responsibility to contribute to the promotion and protection of human rights." "The mining industry, as a business commu- nity, must also have a wider responsibility in both moral and legal terms to use its influence to promote respect for human rights." "Mining companies should develop a Company Policy... and enforce a set of opera- tional principles relating to all aspects of min- ing operations for the protection and promotion of human rights." "The company shall appoint a director for human rights. This director will have a direct line of mutual communication with local management and the Board of Directors. The director shall have staff support in the form of human rights experts." Forced Labor The company states that it ICMM's Statement of Principles says MPI holds that "[c]ompanies must recognise (Continued) "will obey the laws and regu- that it will "Uphold fundamental that forced labour is unacceptable,...and lations of the host country human rights and respect cultures, therefore,...no one shall be required to per- with respect to employment." customs and values in dealings with form forced or compulsory labour...and...no employees and others who are one shall be held in slavery; slavery and the affected by our activities." slave trade in all their forms shall be prohibited." ICMM's policy is not to use forced, compulsory or child labor. 228 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 229 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix NMA's Sustainable Development "We support and promote the protection of "We are committed to playing a con- Report expresses respect for human rights within our sphere of influence structive and positive part in all the human rights. and are not complicit in human rights communities in which we are present. abuses." In this connection, we are active both globally and locally." The company states that it supports "[c]o-operation and dialogue with non- governmental organizations (NGOs) and stakeholders, both locally and globally to develop mutual understanding." "In qualifying for the FTSE4 Good Index, Hydro met the following criteria... [u]pholding and supporting universal human rights." NMA expresses implicit opposition "We do not accept forced labor." to forced labor practices in state- ment that "[t]he US mining industry respects human rights." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 229 CRS_Annex D 3/3/04 12:16 Page 230 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company General Policy and The company is a member of the United The company states that it supports Strategy Statement Nations (UN) Global Compact. "human rights consistent with the (Continued) UDHR" and that it "respects those rights in conducting the Group's oper- ations throughout the world." "In some countries, we may have lim- ited ability to influence the behavior of governments or other third parties. Nonetheless, we should do every- thing in our ability to improve the situ- ation, particularly in the vicinity of our operations. Depending on the circum- stances, a number of options may be open to us, including privately encouraging other organizations to use their influence and supporting ini- tiatives to raise awareness of human rights." Forced Labor The company is a member of the UN "We do not and will not use forced, (Continued) Global Compact. bonded, or child labor." 230 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 231 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards "As part of Holcim's commitment The company states that its UN Norms on the Responsibilities of Transnational to Sustainable Development, we policy is to "[respect] the laws, Corporations and Other Business Enterprises with Regard to recognize our social responsibili- customs, and business prac- Human Rights (Norms) provides in part that transnational cor- ties and aim to visibly play a lead- tices of countries in which we porations "shall recognize and respect applicable norms of ing role within our sphere of operate, without compromising international law; national laws; regulations; administrative influence." our code principles." practices; the rule of law; the public interest; development objectives; social, economic, and cultural policies." The company's Code of "We are committed to high stan- International Covenant on Civil and Political Rights. Ethics "provides that compli- dards of business conduct and International Labour Organisation (ILO) Forced Labor ance with the general laws participate in the UN Global Convention, No. 29, and ILO Abolition of Forced Labor and ethics of Canada apply Compact." Convention, No. 105. to all jurisdictions where the "We express support for the UN Global Compact : "Eliminate all forms of compulsory labor." Company conducts its oper- UDHR." UN Norms: Transnational corporations and other business enter- ations. This includes abuse prises "shall not use forced or compulsory labor as forbidden by of human rights." the relevant international instruments and national legislation as well as international human rights and humanitarian law." Commentary to UN Norms: Workers shall be recruited, paid, and provided with working conditions, including wages that will allow them to enjoy just and favorable conditions of work so as to avoid debt bondage and other contemporary forms of slavery; Workers shall have the option to leave employment and the employer shall facilitate such departure by providing all the necessary documentation and assistance. IFC will not support projects that use Forced or Harmful Child Labor. `Forced Labor' consists of all work or service, not volun- tarily performed, that is exacted from an individual under threat of force or penalty. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 231 CRS_Annex D 3/3/04 12:16 Page 232 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Child Labor "We are unequivocally opposed to forced or "As a fundamental principle, we do not employ "We prohibit the use of child labor." child labor. children or support the use of child labor. We do Our Code clearly states that Alcan does not encourage the creation of educational, training or hire or approve of child or forced labor in any apprenticeship programs tied to formal education form (which includes by our suppliers), in for young people." any country in which we operate." Wages, Benefits, and "We support a compensation system that is "We ensure that compensation meets or exceeds "We will operate fair and appropriate means Terms of Employment internally equitable and externally competi- the legal minimums and is competitive with for the determination of conditions of tive and one that reflects individual efforts industry standards. Our compensation philosophy employment." and achievements." is clearly communicated to employees and is in full compliance with all applicable laws." 232 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 233 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "An overseas corporation must not The company "[p]rohibits the "Wherever we operate we will...support use or obtain the benefit of the labour employment of child labor at its oper- the fundamental human rights of employ- of any child under the age of fourteen ations or by contractors in the ees, contractors and the communities in years in any public or private indus- employ of its operations." which we operate." trial undertaking." The company states that it is committed to concepts such as no child labor in a manner consistent with the UN UDHR as well as the company's HSEC Management Standards. The company has reaffirmed its commit- ment to the UN Global Compact. "An overseas corporation must: The company states that its "[b]ene- "BHP Billiton's remuneration and "The recruitment of employees is Pay all its workers a living wage fits offerings are partly determined rewards practices aim to attract, moti- based on ability and career experi- (sufficient to meet the basic needs by local competitive practices. vate and retain talent of the highest cal- ence, as well as alignment with cor- of a family of 2 adults and 3 children Barrick generally provides a core iber and support the company's Charter porate values. The selection and Not dismiss a worker for reasons of group of benefits pertaining to health by creating distinguishable differences in hiring processes are carried out illness or accident." care (medical/dental/life), regardless remuneration aligned to relative perfor- respectfully, without creating false of the country in which it operates." mance." expectations, and are in line with "Employment with BHP Billiton is offered local practices." and provided on the basis of merit. All "CEMEX is also committed to offering employees and applicants for employ- its human assets competitive com- ment will be treated and evaluated pensation and benefits." according to their job related skills, quali- fications, abilities and aptitudes only." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 233 CRS_Annex D 3/3/04 12:16 Page 234 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Child Labor (Continued) The company states that it ICMM's policy is not to use forced, MPI holds that "[c]ompanies must recog- "will obey the laws and regu- compulsory or child labor. nise...the right of the child to be pro- lations of the host country tected from economic exploitation from with respect to employ- performing any work that is likely to be ment." hazardous or to interfere with the child's education, or be harmful to the child's health or physical, mental, spiritual, moral or social development." "Companies must respect the minimum age for admission to employment." Wages, Benefits, and The company states that it ICMM's Statement of Principles says MPI holds that "[c]ompanies must recog- Terms of Employment "will obey the laws and reg- that it will "[u]phold fundamental nize that everyone has the right to work, (Continued) ulations of the host country human rights and respect cultures, to free choice of employment, to just and with respect to employment." customs and values in dealings with favorable conditions of work and to pro- employees and others who are tection against unemployment." affected by our activities," and that it "Companies must recognise that every- will "[e]nsure fair remuneration and one who works has a right to just and work conditions for all employees." favourable remuneration ensuring for him/herself and his/her family an exis- tence worthy of human dignity supple- mented, if necessary, by other means of social protection." "Companies must recognise that every- one has the right to a standard of living adequate for health and well-being of him/herself and his/her family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemploy- ment, sickness, disability, widowhood, old age or lack of livelihood in circum- stances beyond his/her control." 234 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 235 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix NMA expresses implicit oppo- The company states that if it is "faced with "We do not allow child labor and do not sition to use of child labor in having to make decisions about employment engage children under 16 in our opera- statement that "[t]he US mining of children, we will: tions. If the child is secured the right for industry respects human Seek expert advice to ensure that we education, play, rest and family life, lim- rights." obtain a thorough understanding of the ited exceptions may be made if this is context, including the alternatives avail- clearly in the best interests of the child. able to such children, so that our deci- This is in line with Save the Children sions are informed, transparent and Fund's policy." accountable on an international level; Base our decisions on the best interests of the children involved and on whether we will be making a positive contribution to the conditions in which they live; Not, under any circumstances, employ children for any work deemed hazardous; Never select children because they repre- sent a cheaper source of labour." NMA states that it practices The company "is committed to a legacy of "We select and compensate employees "Our salary systems shall be competi- "[t]reating our employees with increased prosperity and healthier and bet- fairly based on their qualifications and per- tive and shall reflect results achieved. respect, promoting diversity ter-educated people with marketable job formance without discrimination on the Hydro shall offer a total compensation and providing competitive com- skills. The Company considers employees to basis of age, ancestry, citizenship, colour, that is competitive and in accordance pensation programs consistent be its greatest asset, as has embedded peo- creed, disability, ethnic origin, gender mari- with good industry standards in the with performance and industry ple-values into its core value statement." tal or family status, race, religion or sexual country concerned." practice." The company "has in place a range of poli- orientation." "In 2002 we continued to introduce per- cies designed to protect the health and formance-related bonus systems in safety of its employees, provide the oppor- major parts of the group." tunity for training and advancement, ensure fair and equitable remuneration and a non- discriminative workplace." The company states that it "is committed to the professional development of employees through training and employment opportuni- ties; for ensuring remuneration is fair and equitable within the five continents on which the Company operates; for the development of policy and procedures relating to employee rights; and to facilitate a positive work experi- ence for all employees."xvii L A B O R A N D H U M A N R I G H T S S T A N D A R D S 235 CRS_Annex D 3/3/04 12:16 Page 236 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Child Labor (Continued) The company is a member of the UN "We do not and will not use forced, Global Compact. bonded, or child labor. Operations generally apply a minimum age requirement of 18, except in the case of apprenticeships or trainees under regulated government training schemes." Wages, Benefits, and The company's employment policy Terms of Employment states that "...employees will be enti- (Continued) tled to fair and just remuneration poli- cies and practices." 236 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 237 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards The company's Code of "We refuse to employ International Covenant on Civil and Political Rights. Ethics "provides that compli- children at an age Convention on the Rights of the Child. ance with the general laws where education is ILOMinimumAgeConvention,No.138,andWorstFormsofChildLaborConvention,No.182. and ethics of Canada apply still compulsory." UN Convention on the Rights of the Child, Article 32:1. to all jurisdictions where the UN Global Compact: "Effectively abolish child labor." Company conducts its oper- UN Norms: Transnational corporations shall "respect the rights of children to be protected ations. This includes from economic exploitation as forbidden by the relevant international instruments and exploitation of child labour." national legislation, as well as international human rights and humanitarian law." Commentary to UN Norms: Economic exploitation of children includes employment or work in any occupa- tion before a child completes compulsory schooling, and, in any case, before the child reaches the age of 15. Transnational corporations "shall not employ any person under the age of 18 in any type of work that by its nature or circumstances is hazardous, interferes with the child's education, or is carried out in a way likely to jeopardize the health, safety, or morals of young persons." Transnational corporations may employ persons age 13 to 15 years, but only "in light work" and "if national laws or regulations permit" (and mining would not fit definition of light work). Provides further protections against use of child labor, including that transna- tional corporations "using child labor shall create and implement a plan to elimi- nate child labor." IFC will not support projects that use Forced or Harmful Child Labor. "We respect workers' ILO Recommendation No. 116 on Reduction of Hours of Work: Minimum wage and rights, ensure wages benefits are to be at least prevailing industry standard. that meet local industry ILO Convention No. 95 (Protection of Wages). good practice and UN Norms: Transnational corporations "shall provide workers with remuneration strive to provide best that ensures an adequate standard of living for them and their families. Such remu- possible working and neration shall take due account of their needs for adequate living conditions with a development condi- view towards progressive improvement." tions. We commit to Commentary to UN Norms: responsible reorgani- Transnational corporations shall "provide workers with fair and reasonable remu- zation and restructur- neration for work done or to be done, freely agreed upon or fixed by national laws or ing within the local regulations (whichever is higher), payable regularly and at short intervals in legal legal framework." tender, so as to ensure an adequate standard of living for workers and their families. No deductions from worker's wages already earned for disciplinary measures. Transnational corporations shall keep detailed written records on each worker's hours of work and wages paid. Transnational corporations shall not limit in any manner the freedom of workers to dispose of their wages. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 237 CRS_Annex D 3/3/04 12:16 Page 238 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Hours of Work Non-Discrimination "We strive to maintain a workplace where "We recognize, respect and embrace the cultural "We are committed to treating employees and Diversity personal dignity of the individual is respected; differences found in the worldwide marketplace. at all levels with respect and consideration, We do not permit discrimination or harass- Our workplace is a meritocracy where our goal is to investing in their development, and to ment on the basis of race, gender, national to attract, develop, promote and retain the best ensuring that their careers are not con- origin, religious belief or any bases of any people from all cultures and segments of the pop- strained by discrimination or other arbitrary personal characteristics protected by law. ulation, based on ability." barriers to advancement." Discrimination on the basis of sexual orienta- "Within the framework of our Values, we respect "We are committed to workplace equality tion is not permitted at Alcan." the cultures, customs and values of the people in and will seek to eliminate all forms of unfair communities where we operate and take into discrimination." account their needs, concerns and aspirations." "Diversity is a strength in Alcoa. Every employee must respect the people and cultures with which we work. As a company we want diversity at all levels, and expect a work environment in which all employees develop and contribute to their full potential." "We recognize, respect and embrace the cultural differences found in the worldwide marketplace." 238 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 239 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "An overseas corporation must: Not require its employees to work for more than 5 consecutive hours with- out a break of at least 20 minutes Not require its employees to work more than 12 hours each day Not require its employees to work more than 48 hours each week with- out the agreement of the employees." "In any matter relating to the employment The company has policies that for- "All employees and applicants for "One of CEMEX's commitments is pro- or occupation of a person, an overseas bid discrimination and harassment employment should be treated and evalu- moting respect for individual differ- corporation must not distinguish, exclude, "by or against employees or appli- ated according to their job-related skills, ences and opinions, thereby or prefer a person on the basis of face, cants on the basis of race, sex, qualifications, abilities and aptitudes only. preventing any form of discrimination colour, sex, sexuality, religion, political color, national origin, age, religion, Decisions based on attributes unrelated or harassment." opinion, national extraction, or social origin or disability." to job performance...may constitute dis- The company established a Women's if this has the effect of nullifying or impair- "Barrick draws its workforce from crimination and are prohibited. Decisions Integral Development Program "to ing equality of opportunity or treatment in every country in which it operates, relating to suppliers, customers, contrac- assist female employees, as well as that employment or occupation unless the with the result that the workforce is tors and other stakeholders must also be the wives of employees and execu- distinction, exclusion or preference: extremely diverse in terms of based on merit." tives, in maintaining a balance national and ethnic backgrounds." Through its commitment to the UDHR, the between work and family. The under- (a) is based on the inherent require- company supports the principle of Non- lying objective is to promote a bal- ments of the job; Discrimination. anced CEMEX and family (b) is in connection with employment as "BHP Billiton is committed to developing a relationship." a member of the staff of an institution diverse workforce and to providing a work that is conducted in accordance with environment in which everyone is treated the doctrines, tenets, beliefs or fairly and with respect." teachings of a particular religion or One of company's values is "Respect for creed--where that distinction, exclu- Each Other--The embracing of diversity, sion or preference is made in good enriched by openness, sharing, trust, faith in order to avoid injury to the teamwork and involvement." religious susceptibilities of adherent The company reaffirmed its commitment of that religion or creed; to the UN Global Compact. vii (c) is in connection with established governmental policies which specifi- cally promote greater equality of employment opportunity." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 239 CRS_Annex D 3/3/04 12:16 Page 240 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Hours of Work ICMM's Statement of Principles says that it MPI holds that Companies must recog- (Continued) will "[e]nsure fair remuneration and work nise that everyone has the right to rest conditions for all employees." and leisure, including reasonable limitations of working hours and periodic holidays. Non-Discrimination The company states that ICMM's Statement of Principles says that it MPI holds that "[c]ompanies must MAC states that it and Diversity it "will obey the laws will "[u]phold fundamental human rights recognize that all people have the right "[r]espect human (Continued) and regulations of the and respect cultures, customs and values in to work "without discrimination of any rights and treat those host country with dealings with employees and others kind as to race, colour, sex, language, with whom we deal respect to ... employ- affected by our activities" and "[i]mplement religion, political or other opinion, fairly and with dignity." ment opportunities" and policies and practices designed to eliminate nationality or social origin, property, that it will "promote harassment and unfair discrimination in all birth or other status." employees on the basis aspects of our activities." "Companies must recognize that every- of their willingness and ICMM's Statement of Principles also says one without discrimination has the right ability to perform the job that it will "[e]nsure that appropriate sys- to equal pay for equal work." without discriminating tems are in place for ongoing interaction "Companies must not discriminate on the basis of race, with affected parties, making sure that against women, and must recognize the creed, gender or minorities and other marginalised groups special needs of women (maternity, mar- national origin. have equitable and culturally appropriate ital status, reproductive rights protec- However, special efforts means of engagement." tions)." will be made to train and hire people indigenous to each operational or exploration area." 240 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 241 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix "Working hours should be in accor- dance with local law or agreements. Under normal circumstances, on a weekly basis, an employee should not work in excess of 48 hours and 12 hours overtime, and be given a minimum of 24 hours continuous rest. Where operation of the business makes it necessary to deviate from this, measures should be taken to secure sufficient time of rest between each working period, and the overall working situation must not be poorer than the prevailing standard." NMA states that it practices "Cultural diversity is embraced and "We select and compensate employees "An inclusive work culture is important "[t]reating our employees with awareness training ensures cultural fairly based on their qualifications and per- to us. We do not accept any form of respect, promoting diversity and difference is not a barrier to a posi- formance without discrimination on the harassment, or discrimination on the basis providing competitive compensa- tive work experience." basis of age, ancestry, citizenship, colour, of gender, race, color, religion, national tion programs consistent with per- creed, disability, ethnic origin, gender mari- or ethnic origin, sexual orientation, cul- formance and industry practice." tal or family status, race, religion or sexual tural or social background, disability, orientation." marital status, age or political opinion." The company states that its "policy also "We... appreciate and recognize that covers business dealings with customers, all people are unique and valuable, and suppliers, regulatory agencies and the gen- should be respected for their individual eral public. Noranda stands for fairness and abilities". will not condone or tolerate discrimination "We regard diversity as an important of or by its employees" and that it "will source of innovation and healthy deci- adapt work environments and provide job sion-making. We therefore set diversity aids where possible to make sure job access targets in relation to gender, experi- is offered to employees with disabilities." ence, age and cultural background". The company states that it "draws a work- "Our employees shall have equal force from every country in which it oper- employment opportunity and fair treat- ates. Our employees have diverse national ment of all employees shall be provided. and ethnic backgrounds, and we are com- Hydro employees and business units mitted to being an employer of choice. shall only use merit, qualifications and Noranda makes it a priority to hire from other professional criteria as basis for local communities to the fullest possible employee-related decisions in Hydro extent and to provide access to employ- and to show commitment to developing ment opportunities for aboriginal persons, programs and actions to encourage a individuals with disabilities and other diverse organization based on the prin- minorities." ciple of equal opportunity." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 241 CRS_Annex D 3/3/04 12:16 Page 242 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Hours of Work (Continued) Non-Discrimination The company "believes in and is "The Company will not permit discrimina- Company policy provides that there and Diversity firmly committed to a policy that tion, intimidation or harassment of, or by, shall be "no discrimination on the (Continued) assures equal employment opportu- employees on the basis of race, gender, grounds of race, gender, politics, reli- nity for all employees. All employment marital status, national origin or religious gion, age, ethnic or social origin, decisions must be made on the basis beliefs or on the basis of any other per- nation of origin, disability status, sex- of the essential functions of the posi- sonal characteristics protected by law." ual orientation." tion and the qualifications of each "Discrimination is not permitted at any "Rio Tinto employs on the basis of job individual for that position." level of the Company or in any part of the requirement...We may make excep- "We are committed to provide our employment relationship. This includes tions to favour local employment employees with a work environment areas such as recruitment, promotion, where local laws provide." free from any type of unlawful dis- training opportunities, salary, benefits crimination and harassment. This and terminations. Placer Dome is com- includes freedom from all forms of mitted, and employees are required, to harassment and discrimination based sustain an environment that encourages on sex (with or without sexual con- personal respect and mutual trust. duct), race, color, religion, national Differences between individuals, such as origin, age, disability, veteran status, in race, gender, religion and physical lim- and participation in protected activity itations, are to be respected. Employees (including, without limitation, opposi- can expect to have their dignity hon- tion to prohibited discrimination or oured and their rights protected." participation in the statutory com- plaint process)." 242 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 243 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards The company states that a forty ILO Recommendation No. 116 on Reduction of Hours of Work. hour workweek is being imple- Commentary on UN Norms: Transnational corporations "shall mented at all of its operations. not require any worker to work more than 48 hours per week or more than 10 hours in one day. Voluntary overtime for workers shall not exceed 12 hours per week and shall not be expected on a regular basis. Compensation for such overtime shall be at a rate higher than the normal rate. Each worker shall be given at least one day off in every seven-day period. These protec- tions may be adjusted to meet the different needs of manage- ment personnel; construction, exploration, and similar workers who work for short periods (e.g., a week or two) followed by a comparable period of rest; and professionals who have clearly indicated their personal desire to work more hours." "We are committed to pro- "We value diversity and promote The company states that its pol- ILO Discrimination (Employment and Occupation) Convention, viding a workplace free of equal opportunities in recruit- icy is to "[treat] everyone with No. 111. discrimination where all ment, employment, development respect, regardless of their role ILO Equal Remuneration Convention, No. 100. employees can fulfill their and retention." or individual differences." UN Global Compact: "Eliminate discrimination in respect of potential based on merit and employment and occupation." ability." UN Norms: Transnational corporations and other business enterprises shall "ensure equality of opportunity and treatment, as provided in the relevant international instruments and national legisla- tion as well as international human rights law, for the pur- pose of eliminating discrimination based on race, color, sex, language, religion, political opinion, national or social origin, indigenous status, disability, age (except for children who may be given greater protection), or other status of the indi- vidual unrelated to the inherent requirements to perform the job or complying with special measures designed to over- come past discrimination against certain groups." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 243 CRS_Annex D 3/3/04 12:16 Page 244 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Harassment, Abuse, "Alcan has zero tolerance for discrimination "We have zero tolerance for discrimination or and Disciplinary or harassment on the basis of race, gender, harassment of any kind." Action national origin, religious belief or any bases of any personal characteristics protected by law; we do not permit coercion or intimidation in the workplace. [Sexual Harassment] is not tolerated at Alcan. Sexual harassment is an act of a sexual nature that may result in adverse working conditions, including: creation of an intimidating, hostile or offensive work environment; interference with an individual's work performance; and/or limi- tation of an individual's opportunities for employment or advancement. unwanted sexual advances, sexual jokes, subtle or overt pres- sure for sexual favors, sexual innuendoes, and offensive propositions. We do not tolerate workplace harassment or violence of any kind. This includes threats, intimidation, bullying, subjecting individuals to ridicule or unwarranted exclusion." Freedom of "We respect employees' rights in relation to "We recognize and respect the freedom of indi- "We recognize the right of our employees to Association and employment matters. While the Company will vidual Alcoans to join, or refrain from joining, freedom of association." Collective Bargaining promote its position in a fair and legal man- legally authorized associations or organizations." ner, we recognize the right of employees to organize legally and bargain collectively. We affirm each of our rights to express our political convictions, and to vote on them, in our capacity as private citizens." 244 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 245 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx The company states that it "Harassment in any form is unacceptable. Actions that con- The company has ethics com- is "[c]ommitted to providing stitute harassment are regarded by BHP Billiton as serious mittees that operate in every a working environment misconduct." business unit and receive and where all employees are investigate any misconduct treated with respect and reports. dignity. Every employee has The company states that it fol- the right to work in an lows four main disciplinary atmosphere that promotes actions function in miscon- equal opportunity and is duct cases. For minor miscon- free from discrimination ducts, an report is sent to the and harassment." immediate supervisor of the employee involved suggesting a reprimand. For more serious incidents of misconduct "a report [is sent] to the area's Director or Vice president suggesting a strong reprimand and probation period, demotion or even sep- aration from the company." "An overseas corporation must: The company states that it "Wherever we operate we will...support the fundamental Respect the freedom of its workers "[r]espects the rights of human rights of employees, contractors and the communities to associate... employees to freedom of in which we operate." Respect the right of its workers to association and collective The company is committed to concepts such as freedom of organize independently and bargain bargaining. In the majority association in a manner consistent with the UN UDHR as well collectively." of countries where Barrick as its HSEC Management Standards. operates, the ability to form The company reaffirmed its commitment to the UN Global Compact. associations and/or collec- "We fully recognize the right of our employees to freely associate tive bargaining units is and join trade unions, however our position with respect to collec- inherently protected by tive bargaining is more complex. The majority of our employees government labor law." worldwide currently work under collective agreements....Many of our operations have a mix of collective and individual arrange- ments. In these instances, prospective employees are made aware of the employment arrangements under which they will be required to work if they choose to join the Company. At all times our businesses comply with local employment arrangements under which they will be required to work if they choose to join the Company. At all times our businesses comply with local employment law requirements and treat employees in accor- dance with the values expressed in our Charter."viii L A B O R A N D H U M A N R I G H T S S T A N D A R D S 245 CRS_Annex D 3/3/04 12:16 Page 246 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Harassment, Abuse, The company states ICMM's Statement of Principles MAC states that it and Disciplinary that it "will notify all says that it will "[i]mplement "[r]espect human Action (Continued) employees that the policies and practices designed rights and treat company requires them to eliminate harassment and those with whom to treat employees and unfair discrimination in all we deal fairly and non-employees in and aspects of our activities." with dignity." around areas of com- pany operation with dignity and respect." Freedom of The company states that ICMM's Statement of MPI holds that "[c]ompanies must recognise the right of Association and it "will obey the laws Principles says that it will everyone to form trade unions and join the trade union of Collective Bargaining and regulations of the "[p]rovide for the constructive his/her choice, subject only to the rules of the organisation (Continued) host country with engagement of employees on concerned, for the promotion and protection of his/her respect to ... fair matters of mutual concern." economic and social interests. No restrictions may be employment practices." placed on the exercise of this right other than those pre- scribed by law, which are necessary in a democratic soci- ety in the interests of national security or public order or for the protection of the rights and freedoms of others." "Companies must recognise the right of trade unions to establish national federations or confederations and the right of the latter to form or join international trade-union organisations." "Companies must recognise the right of trade unions to freely operate subject to no limitations other than those prescribed by law and which are necessary in a democra- tic society in the interests of national security or public order or for the protection of the rights and freedoms of others." "Companies must recognise the right to strike provided that it is exercised in conformity with the laws of the par- ticular country." "Companies should promote collective bargaining as the most fair way for the employer-employee relationship." 246 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 247 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix NMA states that it practices "We foster work environments that are free "Hydro does not accept any form of "[t]reating our employees with from harassment, intimidation and hostility harassment, discrimination or other respect, promoting diversity and of any kind." behaviour that colleagues or business providing competitive compensa- associates may regard as threatening tion programs consistent with per- or degrading." formance and industry practice." The company states that violations of its Code of Conduct "will not be tolerated and may in accordance with relevant legislation lead to internal disciplinary actions, dismissal or even criminal prosecution." "Hydro recognizes the right to collective bargaining." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 247 CRS_Annex D 3/3/04 12:16 Page 248 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Harassment, Abuse, The company's harassment policy "The Company will not permit discrimina- "We guard against harassment in the and Disciplinary "applies to all employees of the com- tion, intimidation or harassment of, or by, workplace and neither abuse nor mis- Action (Continued) pany and covers harassment by any- employees on the basis of race, gender, use our positions or facilities for per- one in the workplace, including marital status, national origin or religious sonal purposes." supervisors, co-workers, or non- beliefs or on the basis of any other per- The company's policies specifically employees. Included within the prohi- sonal characteristics protected by law. reference sexual harassment. bitions set forth in this policy is Employees are entitled to freedom from conduct such as derogatory, degrad- sexual and all other forms of personal ing or demeaning words, gestures, harassment." and actions or similar types of con- duct concerning an employee's race, color, religion, age, sex, national ori- gin, veteran status, or disability." The company's harassment policy explicitly defines and covers sexual harassment. Freedom of The company is a member of the UN The company "recognizes that it is the Association and Global Compact. choice of each employee as to Collective Bargaining whether or not they wish to join a (Continued) trade union, and we respect those choices. We are comfortable with col- lective bargaining arrangements, indi- vidual arrangements, or a mixture of these." "Employees will have the right to choose whether or not they wish to be represented collectively." 248 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 249 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards The company states that it UN Norms: "Transnational corporations and other business will "[e]nsure that no dis- enterprises shall ensure equality of opportunity and treatment, criminatory conduct is per- as provided in the relevant international instruments and mitted in the workplace and national legislation as well as international human rights law." that all decisions on job Commentary to UN Norms: "No worker shall be subject to selection, advancements direct or indirect physical, sexual, racial, psychological, verbal, and promotions are unbi- or any other discriminatory form of harassment or abuse as ased and based solely on defined above. No worker shall be subject to intimidation or merit and ability." degrading treatment or be disciplined without fair procedures." Multiple and extensive ILO Conventions (including Freedom of Association and the Protection of the Right to Organize Convention, No. 87, and Right to Organize and Collective Bargaining Convention, No. 98). UN Global Compact: "Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining." UN Norms: "Transnational corporations shall "ensure the freedom of association and effective recognition of the right to collective bargaining by protecting the right to establish and, subject only to the rules of the organization concerned, to join organizations of their own choosing without distinction, previous authorization, or interference." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 249 CRS_Annex D 3/3/04 12:16 Page 250 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Labor/Management "We work diligently with our employees and "We are committed to the adoption of fair Relations their representatives to resolve labor issues labour practices at our workplaces and our or contract negotiations in a professional and conditions of service will comply with equitable manner." applicable laws and industry standards." "We will provide appropriate procedures for the protection of workplace rights and our employees' interests." Training and "Training is an investment in our employees. "We will provide employees with opportuni- Education We provide opportunities for personal devel- ties to enhance their skills and capabilities, opment and advancement to our employees enabling them to develop fulfilling careers to improve our ability to respond quickly and and to maximize their contribution to our effectively to our many challenges." business." 250 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 251 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "An overseas corporation must: Enable any complaints about condi- tions of labour to be forwarded to independent authorities; Comply with minimum international labour standards (the ILO conven- tions)." "An overseas corporation must pro- The company "[p]rovides employees "BHP Billiton is committed to working "We are committed to creating a vide adequate education and training with job training and skill develop- with employees to develop career paths work environment in which our peo- to employees in health and safety ment, which can also extend into the that will enable them to maximize their ple can mature and develop to their matters, including the prevention of classroom for specific training." contribution to the company, achieve full potential with the company." accidents." job satisfaction, develop their mar- "We shall provide our employees an ketability and reach their full potential. environment conducive to their We provide employees with on-the-job development and continuous profes- training, and support their ongoing edu- sional improvement, with opportuni- cation." ties for growth within the organization. We will provide the necessary resources for personnel training in these [environmental health and safety] areas." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 251 CRS_Annex D 3/3/04 12:16 Page 252 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Labor/Management ICMM's Statement of Principles says Relations (Continued) that it will "[p]rovide for the construc- tive engagement of employees on mat- ters of mutual concern." Training and ICMM's Statement of Principles says MPI holds that "[c]ompanies must MAC states that it Education that it will "[p]rovide sustainable devel- recognise that all people have the right "[e]nsure[s] that all (Continued) opment training to ensure adequate to technical and vocational guidance employees understand competency at all levels among our own and training programs, policies and and are able to fulfill employees and those of contractors." techniques to achieve steady economic, their environmental social and cultural development and full responsibilities." and productive employment under con- ditions safeguarding fundamental politi- cal and economic freedoms." "All employees involved (including CEOs etc.) in decision-making should be required to undertake appropriate train- ing/cultural awareness and environmen- tal workshops. Employees should be bound by codes of conduct as a condi- tion of employment with appropriate penalties for breaches." 252 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 253 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix "We take part in a constructive and open dialogue with our employees". "As a Hydro leader, you should commu- nicate regularly with your reports and their representatives and make sure that they understand the company's market situation and competitiveness as well as its key decisions and processes. You should give your reports the oppor- tunity to present their ideas, comments and suggestions for improvement." NMA's Sustainable Development "We're training a whole new generation Report states that it is "committed of Angolan oil experts to lend their ideas to safety, health, development and and skills to the industry." well-being of our employees." "We believe that two of the most valu- able things we can provide are education and opportunity. Hydro has undertaken a project designed to give young students from Angola the opportunity to study petroleum related subjects." "We brought forward a commitment to our operations in Angola to train and develop a workforce consisting mainly of Angolans, who will one day be able to run our operations there without expatri- ate assistance." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 253 CRS_Annex D 3/3/04 12:16 Page 254 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Labor/Management The company Relations (Continued) states that it is "[c]ommitted to sustaining a pro- gressive labor- manager relationship." Training and The company states that "[o]ur sustain- "We improve our skills and competen- Education ability policy ensures we will: provide cies by regular performance reviews, (Continued) training and resources to develop recognising potential, undertaking employees and build competencies education, training and coaching as related to environmental and social appropriate, and offering professional responsibilities." development opportunities within the Group." "Employees will be provided with opportunities for education, training and development consistent with the needs of the business." 254 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 255 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards "We are committed to work with ILO Tripartite Declaration. all our stakeholders, building and maintaining relationships of mutual respect and trust. We aim to contribute to improving the quality of life of our workforce, their families and the communi- ties around our operations." The company states that it The company states that its ILO Tripartite Declaration. "[p]rovide[s] our employees policy is to "[c]ontinue to pro- appropriate training and support vide opportunities for employ- thereby maintaining a competent, ees to develop their skills and quality and environment con- to contribute to operations and scious and reliable workforce." business results." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 255 CRS_Annex D 3/3/04 12:16 Page 256 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Security Practices "We must be aware of dealings with coun- "We believe we have the right and the tries that are involved in conflicts or that are responsibility to make our positions known to subject to international sanctions." governments on any matter which affect our "Workplace security: we are committed to employees, shareholders, customers or the ensuring the safety of our employees as well communities associated with our operations. as the security of our assets." Whilst the primary responsibility for the pro- tection of human rights lies with govern- ments and international organisations, where it is within our power to do so we will seek to promote the observance of human rights in the countries where we operate." 256 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 257 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "We have...committed to implementing "Security measures and procedures the ...UK-US Voluntary Principles on are based on proactive and preven- Security and Human Rights (Voluntary tive programs focused on anticipat- Principles)." ing incidents that could impact on personnel, business operations. Continuity and asset protection...." "Anticipating changes in the exter- nal and internal environment where Company has operations...has proven results...where good com- munity relations is essential." "Integrating security to business processes impacts positively on Total Business Results." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 257 CRS_Annex D 3/3/04 12:16 Page 258 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Security Practices The company states that it ICMM's Statement of Principles says MPI holds that "[c]ompanies must not (Continued) "has condemned violations that it will "[e]nsure that all relevant hire mercenaries to protect their business of human rights by all parties staff, including security personnel, are interests as such conduct is likely to in Papua." provided with appropriate cultural and inflame local tensions and is an endorse- In the company's Social, human rights training and guidance." ment of conduct condemned by interna- Employment and Human tional community." Rights Policy, the company "Companies should not operate in areas states that it will "do all in its where such operations require the use of power to make certain its military forces or excessive security in property and/or equipment is order to maintain the operation." not used by any party in the "Companies should suspend operations violation of human rights where existing operations require such [response to inquiries into military force to operate until agreement Papuan abuses]." on the operations could be reached with The company states that it local communities and/or their represen- adheres to the Voluntary tatives." Principles developed by the "Companies should publicly speak out governments of the United against militarisation of areas in which Kingdom and the United they operate." States, companies in extrac- "All mining companies should ensure that tive and energy sectors, and any security arrangements protect human NGOs. rights and are consistent with interna- "Internal, unarmed civilian tional standards for law enforcement." security force receives "Mining Companies should have appro- human rights training. priate relationships with the military and Cooperation with Indonesian law enforcement agencies." military is not unique." "All mining companies should take steps to ensure that suppliers, partners or con- tractors do not infringe human rights principles. This relates particularly to issues such as labour and discrimination standards and the hiring of security contractors." 258 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 259 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix "We will safeguard our property and employees against industrial espionage, theft/ destruction/ tampering with our documents/data/ know-how/ products and other assets, sabotage and terrorist action." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 259 CRS_Annex D 3/3/04 12:16 Page 260 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Security Practices "The Group's procedures for using security personnel are based (Continued) on human rights principles and include guidelines and restrictions on the use of force." Human Right's Guidance: "[w]e should have in place procedures for our security personnel, based on human rights principles and including guidelines and restrictions on the use of force. These procedures should be rein- forced by training. For security contractors, these should be made an explicit condition of business with Rio Tinto." "where the rights of employees or local communities are threat- ened, we should seek to persuade state forces to uphold interna- tional standards, seeking to ensure that Rio Tinto equipment is not used to violate rights, and pressing for investigation of credi- ble allegations." Company policies for directly employed security personnel state that the company will: not hire those implicated in rights abuses screen employees respect people's rights in daily conduct use of force only when strictly necessary and proportional to lawful objectives follow a policy of no arrangements for offensive operations include security in consultations with local communities make security procedures publicly available provide for personnel training and complaints procedures Company policies regarding security issues where it does not have direct control (situations involving those employed by other companies, by governments working in the area, and by governments protecting Rio Tinto assets) infringement of [the] rights of employees and local communities will be opposed, through dialogue, and where it will be helpful, in public; and [the company] actively encourages associate companies to adopt policies consistent with Rio Tinto's. "[Rio Tinto] should persuade government and private companies to: include [the company's] principles in contracts make [the principles] public screen for rights abuses." "Rio Tinto should also make clear Rio Tinto's strong disapproval of human rights violations and press for investigation and prosecution."xxiii 260 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 261 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards UN Norms: "Security arrangements for transnational corpora- tions and other business enterprises shall observe interna- tional human rights norms as well as the laws and professional standards of the country or countries in which they operate." UN Principles on the Use of Force and Firearms. UN Code of Conduct for Law Enforcement Officers. Voluntary Principles: Adherents "express" support for the vol- untary principles regarding security and human rights in the extractive sector, falling into three categories: (1) Effective risk assessment; (2) Interactions between companies and public security; and (3) Interactions between companies and private security. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 261 CRS_Annex D 3/3/04 12:16 Page 262 Alcan, Inci Alcoa, Incii Anglo American p.l.ciii Monitoring and The company states that it conducts audits "Oversight of the Ethics and Compliance Program "Compliance with Business Principles is Compliance of its operations and business practices at is the responsibility of the Compliance Advisory underpinned by an annual Letter of Framework regular intervals to assess environmental, Council." Assurance process from operational man- health and safety performance and compli- agers to divisional CEOs, and from them to ance. the Group Chairman and CEO." "Compliance with the [company] Code will "Checks are undertaken by Internal Audit be measured by audits, which will include department." review of reporting procedures and training "Quarterly report is made to Anglo-American programs." Board on social and ethical issues." The company has instituted "whistle-blow- ing" procedures to underpin compliance. 262 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 263 Australian Parliamentiv Barrick Gold Corporationv BHP Billiton Limitedvi CEMEX, S.A. de C.Vixx "Before 31 August each year, an "BHP Billiton is committed to effective The company has ethics committees overseas corporation must--under performance management, through reg- that operate in every business unit penalty of a fine from the company ular formal and informal feedback and and "have as a mission the safe- and/or officers--lodge with the review, and open communication." guarding of our company's values, Australian Securities and Investments "HSEC Performance and systems are thus monitoring conduct and promot- Commission a Code of Conduct monitored, audited and reviewed to ing compliance with the companies Compliance Report, including: identify trends, measure progress, expected behaviors." A statement of any foreseeable risk assess compliance and drive continu- factors that might arise a result of ous improvement." the activities of the corporation in each country A statement of the social and ethi- cal policies of the corporation Employee remuneration in each foreign country A statement of any contraventions of standards or laws relating to employment, health and safety in each country Any other matter relevant to employment, health and safety standards observed by the corpo- ration The report will be given to Parliament by the Securities and Investments Commission." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 263 CRS_Annex D 3/3/04 12:16 Page 264 Mineral Policy Institute (MPI)­Principles Freeport-McMoRan International Council on for Conduct of Company Operations Mining Association of Copper & Gold, Inc.xi Mining and Metals (ICMM)xii within the Minerals Industryxiii Canada (MAC)xiv Monitoring and "Each operational site will ICMM's Statement of Principles says MPI holds that "[c]ompanies should Compliance have a HR compliance offi- that it will "[i]mplement effective and allow an on going process of indepen- Framework cer and there will be a cor- transparent engagement, communica- dent transparent monitoring of their oper- (Continued) porate Human Rights (HR) tion and independently verified report- ations, including the impact of company Compliance officer. These ing arrangements with our operations on environmental, labour, receive all reports, evaluate, stakeholders" and that it will: human, civil, political and social rights." and forward to government "Report on our economic, social and "Companies should allow an ongoing and NGO authorities." environmental performance and con- process of independent transparent mon- Human Rights Assurance tribution to sustainable development; itoring of their operations, including the Letter from each staff Provide information that is timely, impact of company operations on envi- employee, security employee, accurate and relevant; ronmental, labour, human, civil, political and community development Engage with and respond to stake- and social rights." employee--that they under- holders through open consultation "Companies should have regular and stand the Safety and HR pol- processes." independent audits of their operations icy and have neither taken carried out by independent auditors, part in nor witnessed which include representatives nominated violations. by relevant stakeholders." "Corporate HR Compliance "Companies must recognize that design officer makes a report to and implementation of the independent Public Policy Committee of monitoring and auditing should be jointly Board of Directors each designed by the company in consultation year about HR and compli- with representatives of communities and ance with Safety and HR NGOs." policy." "Companies must report the results of A 2004 audit will be con- auditing and monitoring programs in ducted by International annual reports prepared and verified by Center for Corporate an independent auditor agreed to by Accountability. stakeholder representatives." "Companies should support the estab- lishment of an independent and accessi- ble complaint mechanism, to which communities who feel that the industry's standards have been breached by a par- ticular mine can bring complaints." 264 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 265 National Mining Association (NMA)xv Newmont Mining Corporationxvi Noranda Inc.xviii Norsk Hydro ASAxix "Newmont has a longstanding Code The company states that it provides "We are continuously working on of Business Ethics and Conduct which "[d]etailed information...to many organiza- improving our monitoring and reporting is applicable to every employee of the tions that scrutinize social, environmental, of social performance, including devel- company and its affiliates. The Code and economic performance, including oping framework and measuring com- reaffirms the high standards of busi- EthicScan, Michael Jantzi Research Associates, pliance. Human rights and labor ness conduct required of all employ- Dow Jones Sustainability Index, Fiducie practices will be important topics in ees. The Code is part of Newmont's Desjardines, PricewaterhouseCoopers, and future reporting processes." continuing efforts to ensure that it Environics." complies with all applicable laws, has "Each manager is responsible for implement- an effective program to prevent and ing workplace equality in his or her area, and detect violations of law, and for the will be held accountable for doing so through education and training of employees. the annual performance appraisal process." In most circumstances, the Code sets The company's Executive Committee on standards that are higher than the law Accident Prevention visits work sites to requires." examine successes and failures and to facili- tate the promotion of best practices. The company is a participant in the Global Mining Initiative (GMI), and the Mining, Minerals and Sustainable Development (MMSD) project. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 265 CRS_Annex D 3/3/04 12:16 Page 266 Silangan Mindanao Exploration Phelps Dodge Corporationxx Placer Dome Inc.xxi Rio Tinto Groupxxii Company Monitoring and The company is "[c]urrently developing The Group has "[a]n assurance Compliance internal benchmarks" that will assist in process entailing regular audits, Framework an "[a]nnual self-assessment of [the] reviews and reports" which measure (Continued) company's implementation of [its] sus- "compliance with our occupational tainability policy." health policy and standards." The company has the following sup- plementary guidance documents: Business integrity Compliance Corporate governance Environment standards Financial disclosure Human rights Occupational health standards Rules for dealing in Rio Tinto securities Safety standards The Group states that its management systems fully incorporate its policies with regard to human rights. The Group's Internal Control Questionnaire now includes questions with regards to human rights. Human rights concerns are included in the Group's 5-year Community Plans and 6-month health, safety, environ- ment and community reports. The Group reports to the public on human rights concerns in its social and environmental report. "Over time, we will also seek external verification and indicators of our per- formance." 266 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 267 Teck Cominco Union Cement Limitedxxiv Corporationxxv WMC Resources Ltd.xxvi International Standards The company's Code of "We identify and monitor issues The company states that its pol- UN Norms: Ethics provides that "every important to our social perfor- icy is to "[m]onitor, continu- Transnational corporations "shall be subject to periodic employee who has executive mance. We evaluate our pro- ously improve and publicly monitoring and verification by UN, other international, and or managerial responsibili- grams and activities and publicly report our activities and our national mechanisms, already in existence or yet to be cre- ties is expected to ensure report on performance and performance." ated, regarding application of the Norms. This monitoring that the Code is communi- progress." The company's Advisory shall be transparent, independent, and take into account cated to and understood by "We aim to have our social Committee on the Code of input from stakeholders (including nongovernmental organi- employees reporting to him reports independently Ethics works to "raise aware- zations) and as a result of complaints of violations of these or her and is required to sign assessed." ness, educate, [and] advise" Norms. Further, transnational corporations and other busi- an annual acknowledgement "We encourage stakeholder and "not [to] investigate, ness enterprises shall conduct periodic evaluations concern- of adherence to the Code." feedback and consider their sug- enforce or discipline." ing the impact of their own activities on human rights under gestions in future actions." The company's "Scorecard" in these Norms." Social Responsibility reporting "As an initial step towards implementing these Norms, each provides for "clear objectives transnational corporation or other business enterprise shall and progress reports" and adopt, disseminate and implement internal rules of operation "reporting and scoring on envi- in compliance with the Norms." ronmental and safety issues." The company's social responsi- bility practices are indepen- dently audited by PriceWaterhouse Coopers. An external advisory group "provides advice and guidance on sustainability reports." L A B O R A N D H U M A N R I G H T S S T A N D A R D S 267 CRS_Annex D 3/3/04 12:16 Page 268 Endnotes i Analysis based on: Worldwide Code of Employee and Business Conduct; Alcan Fundamental Principles of Sustainable Development; ICCM Principles: Sustainable EHS Policy, Corporate Social Responsibility Report, and Alcan Inc.'s website at Development Framework; and ICCM's website at www.icmm.com. www.alcan.com. xiiiAnalysis based on Principles for Conduct of Company Operations within the ii Analysis based on: Guide to Business Conduct; Values, Principles, and Human Minerals Industry; and MPI's website at www.mpi.org.au. Rights; Environment, Health and Safety Policy and Principles; Sustainability Report, xiv Analysis based on: Environmental Policy (1995); and MAC's website at www.mining. and Alcoa, Inc.'s website at www.alcoa.com. ca/english. iiiAnalysis based on: Good Citizenship: Our Business Principles; Black Empowerment xv Analysis based on: Sustainable Development Principles; and NMA's website at Report; Good Neighbors: Our Work with Communities; Policies on Climate Change, www.nma.org. Biodiversity, Communities; Safety, Health, and Environment Policies; and Anglo-American xvi Analysis based on: Newmont Mining Corporation's website at www.newmont. p.l.c.'s website at www.angloamerican.co.uk. com/en. iv Analysis based on: Proposed Corporate Code of Conduct Bill (2000) available at xvii The reader should note that the full text of the company's code or policy on this www.mpi.org.au/campaigns/corps.html. particular issues has not been stated in full. This is due to space restrictions that a v Analysis based on: Corporate Social Responsibility Report; and Barrick Gold project of this kind dictates. The reader may contact the company directly for any Corporation's website at www.barrick.com. clarification. vi Analysis based on: Guide to Business Conduct; Health, Safety, Environment and xviiiAnalysis based on: Code of Ethics; 2001 Sustainability Report; Environmental Community Guidelines; Health, Safety, Environment and Community Report 2003; Safety and Health Report 2001; Workplace Equality; and Noranda Inc.'s website at Climate Change Policy; BHP Billiton Charter; and BHP Billiton Limited's website at www.noranda.com. www.bhpbilliton.com. xix Analysis based on: Social Responsibility Principles and Activities; and Norsk vii The reader should note that the full text of the company's code or policy on this Hydro ASA's website at www.hydro.com/en. particular issues has not been stated in full. This is due to space restrictions that a xx Analysis based on: Code of Ethics; Occupational Health and Safety Policy; project of this kind dictates. The reader may contact the company directly for any Environmental Policy; Values and Mission; and Phelps Dodge Corporation's website clarification. at www.phelpsdodge.com. viiiThe reader should note that the full text of the company's code or policy on this xxi Analysis based on: Code of Conduct; Sustainability Policy; 2002 Sustainability particular issues has not been stated in full. This is due to space restrictions that a Report; Health and Safety Charter (Beliefs and Principles); Commitment to the project of this kind dictates. The reader may contact the company directly for any Aboriginal People; Policies on Water and Cyanide Management, ARD and Metal clarification. Leaching Management, Tailing Management, Land Reclamation, Greenhouse Gas ix Also includes APO Cement, which operates as CEMEX Philippines. Emissions; and Placer Dome Inc.'s website at www.placerdome.com. x Analysis based on: CEMEX Philippines website at www.cemexphilippines.com. xxii Analysis based on: The Way We Work (Corporate Code); Social and Environmental xi Analysis based on: 2002 Sustainable Development Report; Ethics and Business Objectives; 2002 Social and Environmental Report; Human Rights Guidance; Conduct Policy; "Fast Facts" on Social Responsibility; Social, Employment and Business Integrity Guidance; and Rio Tinto Group's website at www.riotinto.com. Human Rights Policy; Environmental Policy; 1996 and 1999 Environmental Audits; xxiiiThe reader should note that the full text of the company's code or policy on this and Freeport-McMoRan Copper & Gold Inc.'s website at www.fcx.com. particular issues has not been stated in full. This is due to space restrictions that a xii Analysis based on: Charter, including Principles on Environmental Stewardship, project of this kind dictates. The reader may contact the company directly for any Product Stewardship, Community Responsibility, General Corporate Responsibilities, clarification. 268 M I N I N G S E C T O R CRS_Annex D 3/3/04 12:16 Page 269 xxiv Analysis based on: Short Code of Business, Environmental and Health and Safety Practices; Charter of Corporate Responsibility; 2002 Sustainability Report; and Teck Cominco Limited's website at www.teckcominco.com. xxv Analysis based on: Environmental and Social Responsibility Statements; Holcim Group Corporate Social Responsibility Policy and Principles; and Union Cement Corporation's website at www.unioncement.com. xxvi Analysis based on: Code of Conduct; Policies on Community, Indigenous Peoples, Environment, Safety and Health; 2002 Sustainability Report; Greenhouse Challenge Report; GRI Index; and WMC Resources Ltd.'s website at www.wmc.com.au. xxviiThe reader should note that the full text of the company's code or policy on this particular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. L A B O R A N D H U M A N R I G H T S S T A N D A R D S 269 CRS_Annex D 3/3/04 12:16 Page 270 CRS_Annex E 3/3/04 12:16 Page 271 E A N N E X Mining Sector Environmental Standards Companies/Organizations: Union Cement Corporation WMC Resources Ltd. Alcan, Inc. World Coal Institute Alcoa, Inc. International Standards Anglo American p.l.c. Australian Parliament Issues Examined: Barrick Gold Corporation BHP Billiton Limited General Policy Statement on Environmental, Health, CEMEX, S.A. de C.V. and Safety Issues/Environmental Management Systems . . . . . . . . . . . . . . . . 272-279 European Association of Mining Industries (Euromines) EMS Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280-287 European Commission Freeport-McMoRan Copper & Gold Inc. Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288-295 International Council on Mining and Metals (ICMM) Mineral Policy Institute--Principles for the Conduct of Company Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296-303 Operations within the Minerals Industry Minerals Council of Australia (MCA) Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296-303 Mining Association of Canada (MAC) Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304-311 National Mining Association (NMA) Newmont Mining Corporation Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304-311 Noranda Inc. Norsk Hydro ASA Pollution Control and Hazardous Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . 312-319 Pasminco Limited Phelps Dodge Corporation Waste Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320-327 Philex Gold Inc. Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320-327 Placer Dome Inc. Rio Tinto Group Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328-335 Silangan Mindanao Exploration Company Teck Cominco Limited Monitoring and Compliance Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328-335 271 CRS_Annex E 3/3/04 12:16 Page 272 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. General Policy "[O]ur goal is to protect and promote the "We work safely in a manner that protects and "We recognize the need for environmental Statement on environment and the health and safety of our promotes the health and well-being of the individ- stewardship to minimise consumption of Environmental, Health, employees and the communities where we ual and the environment." natural resources and waste generation and and Safety operate. As part of the overall approach to "Alcoa is committed to good environmental man- to minimize the impact of our operations on Issues/Environmental environment, health and safety (EHS), we agement." the environment." Management Systems must: "It is Alcoa's Policy to operate worldwide in a safe, The company's safety, health, and environ- be familiar with all EHS policies, proce- responsible manner that respects the environment mental aims include: dures and practices; and the health of our employees, customers, and Conserve environmental resources take responsibility for our environment, the communities where we operate. All Alcoans Prevent or minimise adverse impacts personal health and safety and that of co- are expected to understand, promote and assist in Demonstrate active stewardship of land workers; the implementation of this policy and the accompa- and biodiversity. identify hazards, assess risks and when- nying principles: The company has established the following ever possible, initiate corrective action we value human life above all else and manage management principles: and bring the matter to the attention of risks accordingly; Commitment management; we relentlessly pursue and EHS incident-free Competence promptly report EHS incidents to local workplace; Risk assessment management to allow for investigation of we do not compromise our EHS value for profit Prevention and control causes and initiation of corrective and or production; Performance preventive measures; we comply with all laws and set higher stan- Evaluation promptly report EHS incidents to appropri- dards for ourselves where unacceptable risks Stakeholder engagement ate legal authorities as required by local are identified; Continual improvement. regulations; we support sustainable development by incorpo- use personal protective equipment cor- rating social responsibility, economic success, rectly; and environmental excellence into our decision- participate actively in EHS training activi- making process; ties." we measure and assess our performance and The company states that it is "[c]ommitted to are open and transparent in our communica- excellence in EHS through continual tions; improvement of our awareness, understand- we supply and use safe and reliable products ing and performance. Our goal is to protect and services; and promote the environment and the health we use our knowledge to enhance the safety and safety of our employees and the commu- and well-being of our communities; nities where we operate." we are all accountable for conforming with and "Guiding Principles"i,ii deploying our EHS value and principles." 272 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 273 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation which "Operating in a manner that pro- The company states that it has "[a]n over- "CEMEX promotes its Eco-Efficiency Program undertakes any activity in a place tects the environment is a basic riding commitment to health, safety, envi- in all its businesses. The program focuses on must take all reasonable mea- tenet of corporate responsibility. ronmental responsibility and sustainable optimizing knowledge, technology and exper- sures to prevent any material Barrick is committed to demon- development." tise, reducing costs and most importantly, mini- adverse effect on the environment strating responsible stewardship-- "At BHP Billiton, we are committed to sus- mizing the impact of its operations on the in and around that place from that before, during, and after mining tainable development. Health, safety, envi- environment and the local community." activity." operations." ronment and community responsibilities are "The CEMEX Eco-efficiency program also man- "Wherever Barrick is operating or integral to the way we do business. We dates the support of conservation programs." developing mines, the Company commit to continual improvement in our per- "CEMEX is committed to protecting its per- seeks to meet or surpass all local formance, efficient use of natural resources sonnel, communities, and the environment. environmental regulations and and aspire to zero harm to people and the CEMEX worldwide constantly seeks newer guidelines." environment." and more effective ways of improving quality "Barrick's goal is to minimize the "Wherever we operate, we will: [d]evelop, of life and preserving the environment." effects of mining, and restore implement and maintain management sys- "It is our policy at CEMEX to operate our plants natural ecosystems to a condition tems for health, safety, environment, and and facilities in a manner that preserves the that equals or surpasses that community (HSCE) that are consistent with environment and protects the health and which existed prior to project internationally recognized standards and safety of our employees and the public." development." enable us to: "Pollution prevention, enhancement of the identify, assess and manage risks to environment and continual improvement in our employees, contractors, the environment environmental performance are the funda- and communities; mental premises of our company's business." strive to achieve leading industry practice; "In keeping with this policy, CEMEX must: meet, and where appropriate, exceed maintain a proactive attitude, going beyond applicable legal and other requirements; the industrial activity by means of far-reach- set and achieve targets that include ing actions fostering conservation and reducing and preventing pollution; responsibility towards the environment, develop our people and provide safety and health; resources to meet our targets; adopt and enforce internal standards that support the fundamental human rights of will ensure on-going improvement even in employees, contractors and the commu- venues where laws and regulations are in nities in which we operate; the development stage; respect the traditional rights of indige- maintain effective communication channels nous peoples; with employees and the community; care for the environment and value cul- make efficient use of natural resource and tural heritage; energy and actively pursue waste and advise on the responsible use of our emissions reduction; products." provide the necessary resources for person- "We recognize that impacts from our activi- nel training in these areas, as well as support ties have the potential to cause environ- each department's own plans and strategies." mental harm. Our aim is to progressively "The company allocates funds and adopts reduce these impacts and the consequent internationally recognized plans and pro- risk of harm, and achieve overall improve- grams to ensure the best use of our natural ments in environmental performance." resources."ix E N V I R O N M E N T A L S T A N D A R D S 273 CRS_Annex E 3/3/04 12:16 Page 274 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) General Policy "Members of the European min- "Freeport and its operating ICMM holds that companies should: Statement on ing industry shall conduct their affiliates believes that, as a "integrate sustainable development con- Environmental, Health, activities according to princi- responsible corporate citi- siderations within the corporate decision- and Safety ples which promote sustainable zen, it is the duty of the com- making process; Issues/Environmental development." pany and its operating seek continual improvement of our envi- Management Systems "Members shall conduct their affiliates to include minimiz- ronmental policy; (Continued) activities to ensure their long- ing the impact of their oper- assess the positive and negative, the term viability." ations on the environment direct and indirect, and the cumulative "Mining activities invariably and, where feasible, to pro- environmental impacts of new projects-- have some effect on the envi- tecting and enhancing the from exploration through closure; ronment and the minimisation quality of the environment in implement an environmental management of any such effect shall be inte- areas where they operate. system focused on continual improvement gral to the conduct of mining Freeport is also committed to review, prevent, mitigate or ameliorate activities." to providing a safe working adverse environmental impacts; "Environmental protection must environment for its employ- rehabilitate land disturbed or occupied by be based on sound science and ees and a healthy social/ operations in accordance with appropriate must be technically and eco- economic environment for post-mining land uses; nomically feasible." the local people in its opera- provide for safe storage and disposal of "Environmental protection will tional areas." residual wastes and process residues; be considered throughout the "Freeport is committed not design and plan all operations so that ade- life of a mine from exploration only to compliance with fed- quate resources are available to meet the to mine closure." eral, state, and local envi- closure requirements of all operations." ronmental statutes and regulations, but also to con- tinuous improvement of its environmental performance at every operational site. Environmental audits will continue to be conducted to assess environmental com- pliance, management sys- tems and practices. Goals and benchmarks will be established in each operat- ing unit as a yardstick to measure environmental per- formance. Freeport will also work with governmental agencies, the local popula- tion and responsible non- governmental organizations (NGOs) to enhance its envi- ronmental performance." 274 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 275 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Environmental standards should aim MCA's Code for Environmental Management (CEM) "Member companies are commit- "The members of the NMA towards ever-increasing international names the following "Signatory Values": ted to sustainable development pledge to conduct their activi- best practice. There are no interna- integration of environmental , social and eco- which embodies protection of ties in a manner that recognizes tional environmental agreements nomic considerations into decision-making and human health, the natural environ- the needs of society and the specifically governing how mining and management, consistent with the objectives of ment and a prosperous economy. needs for economic prosperity, other mineral industry projects should sustainable development; In all jurisdictions, in addition to national security and a healthy be managed. There are a variety of openness, transparency and improved account- complying with legislative require- environment. Accordingly, we international agreements, which may ability through public environmental reporting and ments, member companies will dili- are committed to integrating be directly or indirectly relevant in a engagement with the community; gently apply technically proven and social, environmental and eco- general sense, as well as various compliance with all statutory requirements, as a economically feasible measures to nomic principles in our mining codes and standards promulgated by minimum; advance protection of the environ- operations from exploration the World Bank and by the industry continually-improving standards of environmental ment throughout exploration, min- through development, operation, itself."xii performance and, through leadership, the pursuit ing, processing, manufacturing and reclamation, closure and post- "Companies must publicly recognise of environmental excellence throughout the closure." closure activities, and in opera- that mining in its basic form of simple Australian minerals industry. Companies are specifically com- tions associated with preparing extraction of a non-renewable mitted to: our products for further use." "[Drive] environmentally responsible behavior resource cannot be considered sus- NMA states that it is committed throughout the organization by: "recognize environmental man- tainable and should not be portrayed agement as an important corpo- to: as such." demonstrating management commitment; rate priority and establish "being a leader in developing, allocating clear roles, responsibilities, account- policies, programs and practices establishing and implement- abilities, and resources; for conducting business in an ing good environmental prac- providing necessary information, performance tar- environmentally sound manner; tices; gets, training, resources and management support; policies to promote Research, decognizing and being strengthening our relationship with the community." Technology Transfer, and Public responsive to possible envi- "[Ensure] environmental management and related Policy in support of environmen- ronmental impacts of explo- social issues are high priorities by: tal objectives; ration activities; establishing environmental management systems establish an ongoing program of developing approaches to (EMS) consistent with current standards; review and improvement of envi- mine planning and develop- incorporating environmental and related social con- ronmental performance, taking ment that are responsive to siderations into the business planning process into account technical and eco- possible environmental along with conventional economic factors; nomic developments, scientific impacts through every stage applying risk management techniques on a site- understanding and environmen- of the mine cycle including specific basis to achieve sound environmental tal effects of operations; closure and post-closure outcomes over life of a project; integrate environmental policies, activities; ensuring resources are adequate to implement the programs and practice into all developing and promoting environmental plans during operations and closure; activities of the organization; new technologies that con- minimizing the environmental impacts of our monitor the performance of envi- tinue to improve efficiencies activities; ronmental programs and man- and environmental perfor- encouraging responsible production and use of agement systems to ensure mance in our mining and pro- our products; compliance with company and cessing operations and in the continually improving and communicating our legislative requirements of this use of our products." environmental performance."xiv policy." E N V I R O N M E N T A L S T A N D A R D S 275 CRS_Annex E 3/3/04 12:16 Page 276 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA General Policy "Newmont and its affiliates intend to "We conduct our business in an environmentally responsible manner." "The environmental policy is our Statement on set standards of excellence with "We know that our activities can have a profound impact on the envi- commitment to continuously reduce Environmental, Health, regard to environmental matters. ronment. To manage this risk we: environmental impacts and risks of and Safety Newmont believes that promoting ensure that we understand the environmental impact of our activities; our activities, contribute to the Issues/Environmental and maintaining high standards of make the principles of sustainable development an integral part of development of sustainable energy Management Systems environmental management, particu- our business strategies and day-to-day operations; systems [and to] proactively meet (Continued) larly in the conservation of natural maintain comprehensive environmental policies to ensure our requirements in legislation and reg- resources, and the prevention of actions are carried out in an environmentally responsible way; ulations." emissions to land air and water, is an are open about and accountable for our environmental performance integral part of its business." and invest in continuous performance improvement; "Newmont will at all times operate avoid doing business with those whom we know do not conduct its facilities in compliance with their business in an environmentally responsible manner." applicable laws and regulations." The company states that all of its employees: "Newmont will adopt and adhere to standards that are protective of both "strive to ensure that our customers have the appropriate systems human health and the environment at to safely handle hazardous materials; the facilities it builds and operates." strive to be leaders in environmental management; commit to the principle that our business decisions will address social issues, including the long term sustainability of communities, taking into account the current and future environmental, safety, health and economic considerations; design, build, operate and evaluate our facilities to ensure that effective management systems are in place to minimize risks to the environment, safety, health and communities; implement and continually improve Environment Safety and Health management systems to improve environment, safety and health performance; establish clear and meaningful objectives and targets for the imple- mentation of site-specific environment, safety and health manage- ment activities; maintain product stewardship programs to protect employees, the public, customers, and the environment by providing appropriate risk management information and assistance on the safe use of our products throughout the product life cycle; communicate openly and on a timely basis with employees, the pub- lic, governments, and other stakeholders on activities involving environment, safety and health; report all material environmental and occupational safety and health matters in a timely manner to the Board of Directors via the Environment, Safety & Health Committee of the Board; provide the necessary resources and empower employees to inte- grate environment, safety and health into all their activities."xv 276 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 277 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. "Our aim is to achieve a high "As one of the world's leading mining and man- "We will continue to be socially The company's Sustainability Policy notes standard of care for the natural ufacturing companies, Phelps Dodge develops responsible by supporting the the company's commitment to the environment in all of the activi- natural resources and creates products that communities where we operate "[p]rotection of human health, reduction of ties in which we engage." contribute to an enhanced standard of living for and protecting and enhancing the our impact on the ecosystem and return of "We undertake to minimise our people throughout the world. We pursue envi- environment." sites to a state compatible with a healthy impact on the environment. We ronmental performance with the same dili- "[The company will] [c]omply with environment." will: gence that we pursue financial, health and or surpass set by environmental (1) conduct our operations in safety performance. We are committed to pol- laws, rules and regulations to pro- compliance with all relevant lution prevention and responsible environmen- mote environmental protection environmental regulations, tal stewardship worldwide. To carry out this and minimize, if not eliminate, licenses and legislation as a commitment, we: environmental risks." minimum condition; design, construct, operate and reclaim our (2) identify, monitor and manage facilities by balancing the needs of the envi- risks arising from our opera- ronment and local communities with the tions; interests of our shareholders; (3) seek continuous improvement promote energy efficiency and maximize in environmental perfor- responsible recycling and resource recovery; mance, production processes, partner with stakeholders to establish rea- waste management and the sonable and equitable environmental goals use of resources; based on sound science; (4) provide appropriate training operate in conformance with applicable gov- and awareness for all employ- ernment requirements and good manage- ees on environmental issues; ment practices, while striving for continual (5) communicate regularly with improvement of our environmental perfor- employees about our aim and mance and EMS; about individual responsibilities; promote accountability for environmental (6) inform our customers and performance at all levels of the organization; suppliers of our aim and of recognize effective implementation of this their responsibilities in rela- policy in evaluating employee performance; tion to our business; foster a culture where every employee is (6) communicate with sharehold- encouraged to adopt the ethic of responsible ers, the community and environmental stewardship in his or her daily governments about our envi- activities. We encourage our employees and ronmental performance, and business partners to incorporate this ethic in contribute to the development their homes and communities." of laws and regulations which "The company states that it complies with the may affect our business." following laws and accompanying regulations: Clean Air Act; Clean Water Act; Resource Conservation and Recovery Act; Superfund; and other relevant legislation." E N V I R O N M E N T A L S T A N D A R D S 277 CRS_Annex E 3/3/04 12:16 Page 278 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited General Policy "Wherever possible we prevent, or otherwise The company states that it is "[c]ommitted to "[C]onduct its operations in a sound environ- Statement on minimise, mitigate and remediate, harmful effects upholding at all times a sound environmental mental manner, seeking to continually Environmental, Health, of the Group's operations on the environment." policy and fulfilling our obligations to the com- improve its performance and incorporate and Safety "Rio Tinto businesses, projects, operations and munity as a responsible corporate citizen." policies for pollution prevention and waste Issues/Environmental products should contribute constructively to the The company states that it is working to: minimization into its daily actions." Management Systems global transition to sustainable development." conserve environmental resources by incor- "[C]ontinually improve its EHS management (Continued) The company has established the following tar- porating environmental protection and reha- systems, policies and controls, ensuring that gets for 2003: bilitation during the planning stage and these are fully integrated into each opera- "finalisation of comprehensive Rio Tinto envi- project implementation; tion's business plan" and "[s]upport and ronmental standards and associated guidance strictly comply with standards set by the gov- conduct research to improve environmental, documents; ernment on environmental laws, rules and health and safety performance at its opera- increased water use efficiency, especially for regulations in order to minimize environmen- tions and to enhance its products for the freshwater; tal disturbance if not totally [eliminate it]; economic, social and environmental benefit reduction in energy used per tonne of product; support and actively participate with any of people everywhere." reduction in total GHG emissions per tonne of research work conducted by any agency for "[Through external evaluations,] gaps in cor- product; zero significant spills." the diverse stewardship of flora and fauna in porate polices, management systems, and the locality; reporting were noted, including operations- promote and maintain harmonious under- wide assessment of environmental perfor- standing with the partner communities and mance in terms of percentage of energy other stakeholders in the management of consumption through renewable sources, community based resources towards self- total water use and total waste generation in reliance; terms of units of production." inform partner communities through the local government units and various sectors con- cerning company's plans and programs; and perform aggressive but prudent exploration, extraction, and utilization of the available mineral resources with due considerations and respect to the culture and heritage of the local communities." 278 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 279 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix "We actively support sustain- The company is committed to achieving compati- "In addressing the chal- United Nations (UN) Norms on the Responsibilities able environmental perfor- bility between economic development and the lenges of sustainable of Transnational Corporations and Other Business mance." maintenance of the environment. development, three basic Enterprises with Regard to Human Rights (Norms): "We believe in the principle It therefore seeks to ensure that, throughout all and inter-related objectives Transnational corporations "shall carry out their that sustainable development phases of its activities, WMC personnel and con- must be met: economic activities in accordance with national laws, regula- should meet the needs of the tractors give proper consideration to the care of security and prosperity; tions, administrative practices, and policies relat- present without compromis- the flora, fauna, air, land and water, and to the social development and ing to the preservation of the environment of the ing the ability of future gener- community health and heritage which may be advancement; and, envi- countries in which they operate as well as in accor- ations to meet their needs. affected by those activities. ronmental sustainability. dance with relevant international agreements, We ensure that our opera- To fulfil this commitment, the company will The industry recognises principles, objectives, responsibilities, and stan- tions do not present a risk to observe all environmental laws and, consistent the need to address issues dards with regard to the environment as well as health or the environment by with the principles of sustainable development, that challenge the role of human rights, public health and safety, bioethics, providing appropriate equip- will: coal in the transition to a and the precautionary principle; and shall gener- ment, training, information progressively establish and maintain company- more sustainable society. ally conduct their activities in a manner contribut- and system." wide environmental standards for our opera- These include health ing to the wider goal of sustainable development." "Union recognizes the impor- tions throughout the world; impacts from the domestic tance of environmental pro- integrate environmental factors into planning use of coal; environmental tection in the pursuit of and operational decisions and processes; impacts from emissions sustainable development. assess the potential environmental effects of associated with the use of UCC considers protection of our activities, and regularly monitor and audit coal; environmental the environment as one of its our environmental performance; impacts associated with highest priorities and seeks continually improve our environmental perfor- coal production; and, eco- to integrate environmental mance, including reducing the effect of emis- nomic and social contribu- concerns in its day-to-day sions, developing opportunities for recycling, tions during, and at the operations." and more efficiently using energy, water and conclusion of, mining activ- "In pursuing our business other resources; ities." objectives, we commit to con- rehabilitate the environment affected by our trol and manage our impacts activities; unto the environment, contin- conserve important populations of flora and ually improve our environ- fauna that may be affected by our activities; mental performance and promote environmental awareness among com- prevent pollution by imple- pany personnel and contractors to increase menting and maintaining an understanding of environmental matters. internationally recognized The company is developing targets for 2003 that environmental management will cover: system." Corporate parent Holcim Group "total and potable water use; says that in 2003 they will energy use; launch a Group corporate progressive rehabilitation; social responsibility (CSR) sulphur recovery; approach, including a Group- CEM conformance." wide health and safety man- agement standard. E N V I R O N M E N T A L S T A N D A R D S 279 CRS_Annex E 3/3/04 12:16 Page 280 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. EMS Standards "In 2004, all Alcan facilities will be certified to The company has established a goal of achieving The company has established a goal of hav- ISO 14001 and OHSAS 18001." ISO 14001 certification or equivalent standards at ing all operations certified to ISO 14001 by "By December 31, 2001, more than 70% of our all locations by 2005. 2004. non-packaging facilities were certified to Another company goal is to achieve zero non-com- either ISO 14001, European Eco-Management pliance incidents. and Auditing Scheme (EMAS), or national standards such as the British Standards Institute's BS 7750." "It is mandatory for all Alcan facilities to strive for 100% compliance (with regulatory demands)--in the case of non-compliance, necessary steps are taken in conjunction with the relevant authorities." "Objective is to meet or exceed regulatory demands; 100% compliance or take neces- sary steps." 280 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 281 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "EMS standards have been devel- With reference to HSEC Management "In line with its Eco-efficiency pro- oped that are in line with internation- Standards, the company states "[t]he scope gram, CEMEX Philippines operations ally accepted standards such as of these Standards covers all operational implement procedures compliant with ISO14001. All operations are expected aspects and activities that have the potential the local legislation and international to have management systems that to affect, positively or negatively, the health standards and best practice in all comply with the corporate outline. and safety of people, the environment or the their plants and offices." Regular audit of each operation community. They cover the entire life cycle serves to verify compliance." of operations, from exploration and planning through to operation, closure, decommis- sioning , remediation and rehabilitation." "The objectives of these Standards are to: provide a risk based HSEC management system framework, consistent with the BHP Billiton Enterprise Wide Risk Management Policy and with ISO 14001, OHSAS 18001, SA8000 and other interna- tionally recognized standards, that sup- port the implementation of the Charter and the HSEC Policy across BHP Billiton; set out and formalize expectations for the progressive development and imple- mentation of more specific and detailed HSEC management systems at all levels of BHP Billiton; provide auditable criteria against which HSEC management systems across BHP Billiton can be measured; and provide a basis from which to drive con- tinuous improvement towards leading industry practice." E N V I R O N M E N T A L S T A N D A R D S 281 CRS_Annex E 3/3/04 12:16 Page 282 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) EMS Standards "[The] Community Eco- The company's Indonesia ICMM holds that companies should: (Continued) Management & Audit Mine has been ISO 14001 "implement an environmental manage- Scheme (EMAS) provides certified since December ment system focused on continual instruments to integrate and 2001. improvement to review, prevent, mitigate manage environmental con- or ameliorate adverse environmental cerns in companies, including impacts; environmental reporting." implement risk management strategies Proposed revisions of [EMAS] based on valid data and sound science; will integrated ISO 14001 consult with interested and affected par- standards. ties in the identification, assessment and management of all significant social, health, safety, environmental and economic impacts associated with our activities; ensure regular review and updating of risk management systems; inform potentially affected parties of sig- nificant risks from mining, minerals and metals operations and of the measures that will be taken to manage the potential risks effectively; develop, maintain and test effective emer- gency response procedures in collabora- tion with potentially affected parties." 282 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 283 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Companies should agree to best MCA encourages companies to "We will comply with all laws and regula- practice targets being defined not by "[establish] EMS consistent with cur- tions in each country where we operate and companies, but by independent com- rent standards." apply the standards reflecting our adher- mittees comprising scientists, other ence to these Guiding Principles and our experts (e.g. social scientists) NGOs adherence to best international practices" community representatives, and com- MAC states that it is "[c]onducting all pany representatives." facets of our business with excellence, "Companies should operate under the transparency and accountability." concept of continuous environmental improvement. This concept provides for continual annual review of envi- ronmental targets. Community groups should be involved in setting these tar- gets at all levels." E N V I R O N M E N T A L S T A N D A R D S 283 CRS_Annex E 3/3/04 12:16 Page 284 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA EMS Standards Newmont's Five-Star Assessment process, "A working example of one of Noranda's key "Based on our main environmental chal- (Continued) covering safety and health, community rela- management tools is the Environment, Safety, lenges we will enhance our EMS using ISO tions, and environment. Approximately 40 nar- and Health (ESH) Management System Audit 14001 as a guideline [and] integrate environ- rative standards, divided into two basic groups: process. Based on the internationally recog- mental objectives and targets in business Management System Standards and Hazard nized ISO 14001 Environmental Management planning." (Safety) and Performance (Environment and Standard, Noranda's Management System was Community Relations) Standards. The assess- adapted to cover safety, industrial hygiene, ment system is based on the principles of ISO occupational health, and emergency prepared- 14001. ness in addition to environment." 284 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 285 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. "Philex-Padcal has been ISO 14001 Certified since September 2002. It was the first copper-gold mining company in Philippines to be certified to this standard. ISO 14001 was adopted in Philippines in 1996 as PNS 1700 series through BPS Technical Committee 55." E N V I R O N M E N T A L S T A N D A R D S 285 CRS_Annex E 3/3/04 12:16 Page 286 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited EMS Standards As of the end of 2002, 72% of the company's The company states that it is working to The company's EHS Management Standards (Continued) operations were ISO 14001 compliant by end of "[s]trictly comply with standards set by the gov- are "broadly compatible with ISO 14001 and 2002. The company hopes to achieve 100% ernment on environmental laws, rules and regu- OHSAS 18001." compliance by the end of 2003. lations in order to minimize environmental disturbance if not totally [eliminate it]." 286 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 287 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix "All Union Cement plants "In WMC, we will: International Finance Corporation (IFC) [are] certified to ISO 9002 have an environmental management system that Environmental Guidelines for Health & Safety: An and ISO 14001; all plants is consistent with the international standard ISO Occupational Health and Safety management sys- are working toward ISO 14001 and meets the requirements of the tem (OHSMS) shall be established, operated and 18001." Australian Minerals Industry CEM; maintained for work associated with IFC projects. have an effective and secure data management The OHSMS should be designed such that certifi- system which collects and delivers robust, reli- cation may be obtained. The comprehensiveness able, meaningful and timely environmental infor- of the system depends on the nature and scale of mation; the project and the magnitude of risks involved. define roles and responsibilities for environmen- The system may be based on OHSAS 18001, ILO- tal management throughout the organisation; OHS 2001, or equivalent internationally recognized provide training and encourage environmental standard. awareness; identify, analyze, evaluate and prioritise environ- mental risks for all activities using a risk assess- ment methodology; report, publicly each year, on our environmental performance; integrate environmental planning, management and performance into the business planning process and procedures." "In WMC, we will: identify all environmental obligations; put to work processes and procedures that fully comply with environmental obligations; provide training and awareness in understand- ing and meeting obligations; put to work an audit and corrective action program; monitor and regularly report on compliance with obligations." E N V I R O N M E N T A L S T A N D A R D S 287 CRS_Annex E 3/3/04 12:16 Page 288 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Health and Safety The company states that it works to "We work safely in a manner that protects and "We strive to prevent fatalities, work related "[e]nsure a working environment that moti- promotes the health and well-being of the individ- injuries and health impairment of employees vates and supports all employees in their ual and the environment." and contractors." efforts to achieve zero work-related injuries "Alcoa will not compromise health or safety in the The company promotes the following aims: and illnesses" and that it establishes workplace for profit or production. It is the goal of "Prevent or minimise work-related injuries "[a]nnual objectives for accident reduction every Alcoa location to have and maintain a safe and health-impairment of employee con- and goals for high-level plant hygiene and workplace. Policies and procedures are mandated tractors housekeeping." in all of our plants, offices and work sites. Each of Contribute to addressing priority commu- us must perform our job while following these nity health issues." health and safety rules, and must promptly report any concerns, safety violation or incidents." The company has established the following health goals: "100% of workplace health hazards identified and described by year-end 2003; 95% or more of workplace health hazards ade- quately measured by year-end 2003; 40% or more reduction in the number or magni- tude of the top 10 noise sources at each location by year-end 2003; 40% or more reduction in the number or magni- tude of chemical hazards exceeding Alcoa stan- dards by year-end 2003; occupational medicine expertise and facilities serving each location by year-end 2003; 100% of required medical evaluations per loca- tion completed annually; 50% or more reduction in the number of top 10 ergonomic risks at each location by year-end 2003; all existing locations with "good" rating for ergonomics from audit or self-assessment scores by year-end 2003." The company has established the following safety goals: "zero Fatalities, zero lost workday injuries; zero incidents; deployment of risk management and reduction programs to eliminate causes of injuries." 288 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 289 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must take The company states that it is The company states that it has "[a]n "The main components of our safety all reasonable measures to promote "[c]ommitted to operating in a safe overriding commitment to health, safety, management system consist of a the health and safety of its workers." and healthful manner. Any work- environmental responsibility and sustain- safety manual, an electronic monitor- "An overseas corporation must: related injury or illness is unaccept- able development." ing and tracking system (SISTER), the provide a safe and healthy work- able and Barrick is committed to the "We set health and safety targets that CEMEX Safety Award, communica- place for its employees; identification and elimination of continually reduce the risk of harm to our tions and synergy networks, and spe- provide satisfactory sanitary condi- workplace hazards." employees, contractors and visitors to cific country programs, such as tions at a workplace; "Our objective is to improve overall our sites. We place the highest value on safety audit and risk analysis." have appropriate policies for health and safety performance at all being a responsible and caring employer. "Safeguarding the health and well- responding to an accident or med- operations. During 2002, eight of 12 This also applies to communities where being of CEMEX people is a critically ical emergency at a workplace; producing operations reduced their we operate and means their social well- important component of our corpo- provide adequate education and lost-time injury rate and seven being should be preserved or enhanced rate EHS policy. We have two primary training to employees in health and reduced their total medical aid injury by our presence." objectives: ensuring that all employ- safety matters, including the pre- rate. Barick's overall lost-time rate, The company's HSEC Policy Guide com- ees have proper medical attention, vention of accidents." including exploration, development mits to "safe and healthy working condi- and promoting a culture of good and reclamation activities, was tions" through incorporation of UDHR. health among all employees through reduced 22 percent to 0.7, compared preventive medicine programs." to 0.9 for 2001." E N V I R O N M E N T A L S T A N D A R D S 289 CRS_Annex E 3/3/04 12:16 Page 290 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Health and Safety "Members shall provide good, "European Union (EU) Council The company states that it ICMM holds that companies should: (Continued) safe and positive working con- Directive 92/104/EEC (of "will obey the laws and reg- "seek continual improvement of our ditions taking all protection 3.12.1992) sets minimum ulations of the host country health and safety performance; measures necessary." requirements for improving with respect to...on-the-job implement a management system focused "Members shall identify and the safety & health protection health and safety." on continual improvement of all aspects of minimise potential risks associ- of workers in surface & operations that could have a significant ated with mining and shall underground mineral extrac- impact on the health and safety of our adopt suitable preventative tion industries." own employees, those of contractors and measures to reduce such "Seveso Directive"--Council the communities where we operate; risks." Directive 96/82/EC--obliges take all practical and reasonable mea- industrial operators to put into sures to eliminate workplace fatalities, effect Safety Management injuries and diseases among our own Systems, including a detailed employees and those of contractors; risk assessment on the basis provide all employees with health and safety of possible accident scenar- training, and require employees of con- ios, & could cover extractive tractors to have undergone such training; activities." implement regular health surveillance and risk-based monitoring of employees; rehabilitate and reintegrate employees into operations following illness or injury, where feasible." 290 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 291 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) MCA states that it has the following MAC states that it is "[c]ontributing to NMA states that it is committed to the "Safety and Health Vision": "An global initiatives to promote the production, "safety, health, development and Australian minerals industry free of use and recycling of metals and minerals in well-being of our employees." fatalities, injuries and diseases." a safe and environmentally responsible MCA defines "safety awareness" as manner." "the state of mind where we are con- "Ongoing efforts to protect our employees, stantly aware of the possibility of communities, customers and the natural injury and act accordingly at all environment." times." MCA's "Safety and Health Beliefs" include: "all fatalities, injuries and diseases are preventable; no task is so important that it can- not be done safely; all hazards can be identified and their risks managed; everyone has a personal responsi- bility for the safety and health of themselves and others; safety and health performance can always be improved." MCA's policy with regards to "Operator/Contractor Safety and Health Management" states that: operators have the responsibility to protect the safety and health of every person on site including con- tractors and their employees; the relationship between the oper- ator and contractor will include the agreement and implementation of a plan to effectively identify and man- age safety and health issues." E N V I R O N M E N T A L S T A N D A R D S 291 CRS_Annex E 3/3/04 12:16 Page 292 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Health and Safety "Newmont's strategy for sustainable business "We commit to making our work environments "Improving safety will remain a major chal- (Continued) adopts an integrated approach that has its safe and healthy." lenge as we integrate new units. We know employees' safety at its core." "We create safe and healthy work environ- from experience that recently integrated "Each and every person is responsible for his ments through the design of the work environ- operations achieve a standard of safety, on or her own safety and the safety of those in ment, the planning and performance of work, par with the average for the company, after their area. Accordingly, safety is embedded in the provision and use of the necessary equip- two or three years. For 2003 the target is a Newmont's value statement, remuneration at ment, tools and procedures, the provision of for a further 20 percent improvement for the managerial level is planned to be linked to appropriate training and the constant identifica- Hydro in total." the company's safety performance and roles, at tion and elimination of risks in the workplace." every level, are dedicated to safety and health." The company has established the following objectives: "to reduce Lost-time Injury Frequency and Reportable Injury Frequency from 1997 levels by one-third by 2000." (The company noted that it achieved only 4% and it is still working on this objective.) The company states that it is committed to: "providing information and tools about work- ing conditions; providing employee training in safe work practices and personal protective equipment; reducing workplace injuries, illnesses, and fatalities; changing workplace culture to increase awareness of, commitment to, and involve- ment in safety and health." "Noranda sees that contractors are provided with the necessary training about any potential risks, health hazards, available controls, and that all required procedures are communicated." 292 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 293 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. "We are committed to achieving the "At Phelps Dodge, we believe that all "All employees participate in extensive highest standard of occupational health injuries and occupational illnesses safety training." and safety in all the activities in which can be prevented, and that safety is The company is developing a corporate we are engaged." a fundamental responsibility of each safety strategy. "We aim to achieve an incident free employee of the company. We also "Provide safe and healthy working condi- organisation by ensuring all duties are believe that safety and occupational tions, develop, maintain and promote safe performed correctly from the outset. This health must be joined with our effort and productive work practices in all vision will only be achieved if we ensure to produce high-quality products at aspects of its business and comply with all that all incidents are reported, investi- competitive prices. Therefore, for the occupational health and safety laws and gated and, when necessary, corrective well-being of all employees and as a regulations governing its activities." actions are implemented." matter of policy: "Considers the safety and health of its We will: management will promote safety employees to be of utmost importance in implement and utilise the Pasminco on and off the job; implement acci- the efficient conduct of its business, and Safety System as the foundation for dent prevention programs, sys- believes that Management and each and the management of occupational tems and techniques; provide a every employee have a shared responsibil- health and safety; work environment in which identi- ity in the promotion of health and safety in provide a safe and healthy working fied occupational health and the workplace. The company has a Health environment for all employees, con- safety hazards are controlled and Safety Policy."xix tractors and visitors; when elimination is not feasible; A Safety Charterxx and a set of Guiding identify and assess and then either facility managers will be responsi- Principles for Health and Safety Policy:xxi eliminate or control all hazards to ble and accountable for a superior provide a safe and healthy workplace for health and safety as the leading item in level of safety performance; insti- all our people including employees, con- a total risk management process; tute work practices which reflect tractors and visitors; conduct our operations in compliance safe and efficient methods for train and motivate all our people to work with all relevant legislation, regula- accomplishing the required tasks; in a safe and responsible manner; tions, standards, licenses and codes; correct all deficiencies promptly, make health and safety a part of all busi- seek continuous improvement in all either through modifying facilities, ness decisions; aspects of work processes and proce- changing procedures, bettering integrate the highest safety standards dures; employee training or disciplining through exploration, design, construc- ensure that there is effective involve- constructively and consistently; tion, operations and closure; ment and open communication on all educate and train employees apply "best practices" to ensure that our occupational health and safety matters regarding hazards on the job.; health and safety performance is recog- at all levels in the organisation; all employees will be expected to nized as a world leader; require employees, contractors and perform their jobs in the safest man- comply with relevant legislation and visitors to abide by all policies and ner prescribed; be expected to con- exceed community expectations; rules that have been formulated in the duct themselves in a way that strive for continual improvement in our interest of occupational health and enhances their personal safety and health and safety performance by set- safety; that of their fellow workers; be ting and reviewing achievable targets; ensure that all employees, contractors encouraged to report workplace hold all our people accountable for and key suppliers have the necessary hazards and to make suggestions health and safety; knowledge and skills to undertake their for their control; and be expected to ensure all our people understand that no work in a healthy and safe manner. cooperate and contribute toward task is so important that time cannot be the overall success of the program." taken to complete work safely.xxii E N V I R O N M E N T A L S T A N D A R D S 293 CRS_Annex E 3/3/04 12:16 Page 294 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited Health and Safety "Safety is a core value and a major priority; our The company states that it is "[c]ommitted to "[S]trive to identify and eliminate or control (Continued) goal is zero injuries. Everyone's behaviour con- maintaining safety in the workplace." all safety and health hazards and monitor tributes to an injury free workplace; full and worker health performance to continually consistent implementation of and accountabil- reinforce a company-wide commitment to ity for Rio Tinto's comprehensive standards, excellence." guidelines, systems and procedures is required "Everyone has the Right to a safe and across the world." healthy workplace; Our objective, therefore, "Alongside this, we are building a supportive is to attain zero incidents. safety culture that requires visible leadership, Teck Cominco therefore commits to: ongoing education and training and a high level implement the company-wide health and of participation by everyone in the workplace." safety policy standards; "We require safe and effective working rela- provide the necessary resources to satisfy tionships at all levels around the Group. Whilst the requirements of the standards; respecting different cultures, traditions and measure performance against these employment practices, we share common standards; goals, in particular the elimination of workplace clearly identify accountability for health injuries, and are committed to good corporate and safety." values and ethical behaviour." "Everyone in our workplaces must commit to "We strive to protect our physical health and actively participate in the health and safety well-being in the workplace. We are committed program by: to preventing new cases of occupational dis- ease and have a target of achieving a signifi- taking a moment at the start of each day to cant reduction in these cases year on year think about their safety and the safety of through the continual identification, evaluation their co-workers; and control of workplace exposures. We have working in compliance with established developed a set of core occupational health work procedures; standards. We implement these standards in recognizing hazards and striving to minimize conjunction with education, training, and the the risks associated with these hazards; incorporation of systems and procedures." asking for guidance or information if there By the end of 2003, the company hopes to is any uncertainty; achieve: assisting in the search for better ways of doing things; "50% reduction in the lost time injury frequency demonstrating leadership by setting a rate by the end of 2003, from 2002 levels; good example." reduction in the number of new cases of occupational disease per 10,000 employees; "[Through external evaluations,] gaps in cor- reduction in number of employees exposed to porate polices, management systems, and noise over 85dB (A) per shift; reporting were noted, including: publicly significant progress toward implementation reported and quantified occupational health of the Rio Tinto occupational health stan- and safety targets." dards with full compliance by the end of 2004." 294 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 295 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix "We provide healthy The company states that it is IFC Environmental Guidelines for Health & Safety: The employer is responsible for and safe workplaces committed to "maintaining a safe planning, implementing and monitoring programs and systems required to ensure by striving for zero and fair working environment." OHS on its premises. Such provisions shall be pro-active and preventive by iden- risk to our employ- "WMC strives to develop a cul- tification of hazards as well as by evaluation, monitoring and control of work- ees, contractors and ture that supports its'safety and related risks. The employer shall provide and maintain workplaces, plant, visitors."xxv health' value by encouraging equipment, tools, and machinery and organize work so as to eliminate or control "We apply occupa- behaviours and implementing hazardous ambient factors at work. The employer shall provide appropriate occu- tional health and processes that ensure the safety pational health and safety training for all employees. The organization shall, at no safety (OHS) stan- and health of all employees, con- cost to the employee, provide adequate personal protective equipment. The dards and guide- tractors, customers and the com- employer shall record and report occupational injuries and illnesses. Contract lines, provide the munities associated with our specifications must include demands for service providers, contractors and sub- necessary worldwide operations." contractors to have or establish systems enabling them to meet the OHS require- resources and train- "In support of this we believe ments of the employer. ing, and measure that: IFC General Health and Safety Guidelines: All installations shall be designed and performance."xxvi no business activity will come operated to protect the health and safety of employees and the community, The company has a before health and safety; including: air quality, noise, confined spaces, general health, general safety, target of zero deaths all incidents and injuries are drinking water, training, and occupational health and safety monitoring. or injuries causing preventable on and off the job; World Bank Environment, Health, and Safety Guidelines for Open Pit Mining and permanent disable- accountability for health and Milling and Guidelines for Underground Mining and Milling: "Periodic monitoring of ment annually.xxvii safety rests with every individual; workplace air quality should be conducted for air contaminants relevant to individuals must identify, employee tasks and the plant's operations."; "Ventilation, air contaminant control assess and manage hazards; equipment, protective respiratory equipment and air quality monitoring equip- legal obligations are the foun- ment should be well maintained."; "Protective respiratory equipment must be dation of our health and safety used by employees when the exposure levels for welding fumes, solvents and standards; other materials present in the workplace exceed local or internationally accepted individuals will be trained and standards." equipped to ensure an incident World Bank Environment, Health, and Safety Guidelines for Underground Mining free workplace." and Milling: "Trained and qualified personnel must inspect and test the roof and sides of the underground working areas before beginning operations."; "Tunnels should be large enough to provide safe clearance for haulage and tramming, including adequate space for personnel to move around all equipment and vehi- cles."; "Conveyors and similar machinery should be provided with emergency stops at multiple points."; "Adequate lighting should be provided on all main haulages." UN Norms: Transnational corporations... shall provide a safe and healthy work- ing environment as provided by the relevant international instruments and national legislation as well as international human rights and humanitarian law. Numerous International Labour Organisation (ILO) Conventions and Recommendations, including: 176 (Safety and Health in Mines Convention), 136 (Benzene Convention), 139 (Occupational Cancer), 148 (Working Environment (Air Pollution, Noise and Vibration) Convention), 155 (Occupational Safety and Health Convention), 161 (Occupational Health Services Convention). E N V I R O N M E N T A L S T A N D A R D S 295 CRS_Annex E 3/3/04 12:16 Page 296 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Energy The company states that it works to "[m]ini- "Alcoa is committed to increasing its use of clean The company established Energy Efficiency mize any adverse environmental impact from and renewable hydroelectric power as a means of Targets in 2002. operations and business practices, and use achieving sustainability for its manufacturing and natural resources and energy more effi- service operations." ciently through the effective use of manage- ment systems that continually improve EHS performance." Water "Alcan publishes Environmental Impact The company has established a goal of 60% The company established Water Statements for our facilities which serve to reduction in process water use and discharge by Consumption Targets in 2003. communicate in the public domain our 2008. research and commitments in this area. We always endeavour to meet all local require- ments as well as international standards for water use." 296 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 297 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Fuel is a major cost of operations and The company states that it has "[a]n The company has an "[e]co-effi- is carefully managed. Energy conser- overriding commitment to health, safety, ciency program to optimize energy vation progress is measured and environmental responsibility and sustain- and raw material efficiency, through reported at each operation annually." able development." alternative fuels and reusing waste "We commit to continual improvement in materials." our performance, efficient use of natural resources and aspire to zero harm to people and the environment." The company states that it works to "[d]evelop , implement and maintain management systems for HSEC that are consistent with internationally recog- nized standards and enable us to...set and achieve targets that include reduc- ing and preventing pollution." "Impacts on water resources are The company has a water conserva- carefully assessed at all operations tion program. prior to their development. In this way, measures to avoid or minimize effects are incorporated into project design and operations. Where impacts cannot be avoided, steps are taken to mitigate those effects such as water treatment. Water conserva- tion is monitored and reported by each operation. Monitoring during operations and closure verify that controls are adequate or that further controls are required. Routine audits assess the adequacy of existing con- trols and help identify where further water protection opportunities exist." E N V I R O N M E N T A L S T A N D A R D S 297 CRS_Annex E 3/3/04 12:16 Page 298 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Energy (Continued) ICMM holds that companies should: "Conduct or support research and innova- tion that promotes the use of products and technologies that are safe and efficient in their use of energy, natural resources and other materials." Water (Continued) "Commission-proposed "Freeport operates sewer ICMM holds that companies should: Water Framework Directive-- system on-site--effluent "Conduct or support research and innova- COM (1999) 271." wastewaters monitored for tion that promotes the use of products and compliance with local technologies that are safe and efficient in (Indonesian) laws." their use of energy, natural resources and other materials." 298 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 299 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) MCA's 2000 CEM encourages compa- MAC states that it will "develop, design and NMA states that it is committed to nies to "[employ] production operate facilities based upon the efficient "[e]ncouraging climate policies that processes that are efficient in their use of energy, resources and materials." promote fuel diversity... to address consumption of energy, materials and MAC also states that it is "[s]eeking to min- climate concerns..." natural resources." imize the impact of our operations on the environment and biodiversity." MCA's 2000 CEM encourages compa- MAC states that it is "[s]eeking to minimize nies to "[employ] production the impact of our operations on the envi- processes that are efficient in their ronment and biodiversity." consumption of energy, materials and natural resources." E N V I R O N M E N T A L S T A N D A R D S 299 CRS_Annex E 3/3/04 12:16 Page 300 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Energy (Continued) The company has established the objective of "We will develop and manage activities reducing energy consumption by 1% per year. which make efficient use of energy and raw materials." "We are intensifying our concentration on hydrogen as energy carrier and continuing our work on developing renewable energy sources such as water, wind and wave power." Water (Continued) "When discharges to surface or ground waters The company has established the following are unavoidable, Newmont is required to com- objective with regards to metal emissions: ply with the host country's local laws and regu- "To meet voluntary sectoral commitment to lations. If country laws are non-existent, reduce metal releases to air and water by inadequate, or incomplete, US Environmental 80% of 1988 base levels by 2008." Protection Agency (EPA) primary drinking water standards will be deemed the appropri- ate standards for the protection of human health." 300 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 301 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. "We promote energy efficiency and The company states that it is committed to: maximize responsible recycling and "strive to minimize the use of energy at resource recovery." our operations; evaluate and incorporate where feasible the most efficient use of energy in our new projects; measure, track, report, research, partici- pate in national discussions on energy use and GHG emissions." The company states that it complies The company has developed policies on with the Clean Water Act. water and cyanide management, and acid rock drainage (ARD) and metal leaching. E N V I R O N M E N T A L S T A N D A R D S 301 CRS_Annex E 3/3/04 12:16 Page 302 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited Energy (Continued) The company states that it manages energy consumption by: "Improving energy efficiency at our operations; Ensuring that decisions on technology choice and equipment selection for our operation consider energy related matters; Sourcing our energy requirements so that social and environ- mental outcomes are optimised to the best extent possible." Water (Continued) The company states that it manages water consumption accord- "Initiatives to conserve water are in place at ing to the following principles: all operations where consumption can be "water use and discharge planning conforms to the water use significant in relation to local supply." requirements of other users within the catchment; policy for water management is communicated by senior man- agement through formalised objectives and targets; water use, storage and discharge are defined in a site water bal- ance that is updated to reflect changes to operational requirements; water management practices include the monitoring of supply and discharge; fresh water use is to be reduced through process improvement, recycling of wastewater and, where practicable, by the use of poorer quality water; water abstraction, storage or discharge does not irreversibly reduce the health of wildlife or habitats; water storage, treatment and discharge facilities are designed, constructed and managed based on best available practices applicable to local operating conditions." 302 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 303 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix The company is work- The company states that it is working to "[c]ontin- The World Coal ing to "[o]ptimize the ually improve our environmental performance, Institute states use of production including reducing the effect of emissions, devel- that it is work- materials, water, oping opportunities for recycling, and more effi- ing to "improve electricity, fuel, oil, ciently using energy, water and other resources." the technical chemicals and other "In WMC, we will: and economic resources." establish an inventory of all significant potential efficiency of The company has an energy uses; energy conver- Alternative Fuels and establish an energy management plan; sion, thereby Raw Materials pro- use energy-efficient designs for all plant and minimising gram to conserve items of equipment; resource use." energy. actively promote efficient use of energy; monitor our energy consumption and perform regular energy audits; consider the use of alternative and renewable energy sources." The company is work- The company states that it is working to "[c]ontin- IFC Pollution Prevention and Abatement Handbook (PPAH): Extensive ing to "[o]ptimize the ually improve our environmental performance, water pollution standards. use of production including reducing the effect of emissions, devel- IFC PPAH--Guidelines for Base Metal and Iron Ore Mining: specific materials, water, oping opportunities for recycling, and more effi- effluent level targets and standards; project plans must provide a electricity, fuel, oil, ciently using energy, water and other resources." water management plan. chemicals and other "In WMC, we will: IFC PPAH--Guidelines for Coal Mining and Production: specific effluent resources." establish baseline data on water quality for all level targets and standards; a mine's development plan should address water sources and receiving environments; "[d]iversion and management of surface and groundwater to minimize water consult with interested parties on water man- pollution problems"; water management plans must include preparation agement strategies; for "minimization of liquid wastes by methods such as recycling water from have water management plans aimed at pre- the tailings wash plant"; "Settling ponds to catch stormwater and to reduce venting or minimising environmental impact. suspended solids should be provided for all effluent before discharge." Such plans must include a water balance and World Bank Environment, Health, and Safety Guidelines for Open Pit monitoring strategy and should be reviewed for Mining and Milling and Guidelines for Underground Mining and Milling: any new development; Standards for liquid effluents discharged to receiving waters; Standards identify all potential sources of contamination; for erosion and sediment control plans. use water efficiently and maximise the opportu- World Bank Environment, Health, and Safety Guidelines for Open Pit nity for recycling and reuse of water." Mining and Milling and Guidelines for Underground Mining and Milling: "Marine discharges...must not have a significant adverse effect on coastal resources. Riverine discharges are not acceptable unless the project sponsor provides thorough documentation regarding: 1) environ- mental analysis of alternatives, and 2) effects on aquatic resources and downstream users of riverine resources."; "If the mining operation involves a series of open pit operations, project sponsors must evaluate the feasibility of using abandoned open pits for tailings disposal." E N V I R O N M E N T A L S T A N D A R D S 303 CRS_Annex E 3/3/04 12:16 Page 304 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Biodiversity "Alcan publishes Environmental Impact "The company actively endorses the concept of The company is "[d]esigning and implement- Statements for our facilities that deal with, conservation of biodiversity by operating world- ing more complete guidelines for community among other things, the potential impact on wide in a manner which minimizes impacts on nat- engagement and biodiversity conservation in biodiversity of our facilities. We also have ural habitats and biological resources. New or response to Business in the Environment programs for the protection of biodiversity." expanding operations should document the level of Financial Times Stock Exchange (FTSE) ecosystem and species diversity within their area Survey." of influence by applying techniques, procedures, "A group policy on the management of biodi- and information generally accepted by the interna- versity will soon be published along with the tional scientific community. Measures to minimize guidelines for our operational companies on adverse impacts on ecologically significant ecosys- sound biodiversity management practice. All tems or species should be adopted. Particular operations will adopt and implement a biodi- attention should be paid to the conservation of rare versity management strategy."iii,iv biological communities and rare, endangered or threatened species." Biodiversity is a consideration in the company's Mine Rehabilitation Standards. Emissions "[In] 2000, [Alcan] developed TARGET, a com- The company has established the following emissions The company has "[a]dopted the tools and pany-wide GHG management initiative. Global reduction goals (from base year 2000): guidelines developed by the Greenhouse Gas target to achieve annual reduction of 500,000 60% reduction in SO2 by 2008 Protocol Initiative for reporting greenhouse tonnes of GHG by 2004. [The company] will set 50% reduction in VOCs by 2007 gas initiatives--led by the World Business targets for each subsequent year." 40% reduction in NOx by 2008 Council for Sustainable Development The company is involved in the following GHG 80% reduction in airborne mercury by 2008. (WBCSD) and the World Resources Institute initiatives and programs: (WRI)." From base year 1990: canadian Industry Program for Energy "Our Climate Change Policy: We recognize 25% (perhaps 50%) reduction in GHG emissions by Conservation; that climate change is a real international 2010. champions in Action Initiative of the and community concern and Anglo American Canadian Voluntary Challenge and Registry, commits itself to contribute to finding and charter member of US EPA's Climate implementing solutions to the challenge it Leaders Program, poses."v,vi voluntary Aluminum Industrial Partnership; voluntary GHG reduction agreement with the Government of Quebec and Aluminum Association of Canada to reduce CO2 by 200,000 tonnes by 2007. 304 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 305 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Biodiversity is assessed at all operations The company states that it has "[a]n overriding commitment to health, "Our commitment to prior to their development. In this way, safety, environmental responsibility and sustainable development." conservation is measures to avoid or minimize effects are "We commit to continual improvement in our performance, efficient demonstrated incorporated into project design and use of natural resources and aspire to zero harm to people and the through our direct operations. Where impacts cannot be environment." efforts to preserve avoided, steps are taken to mitigate those The company states that it works to "[d]evelop , implement and maintain biodiversity, includ- effects such as off-site habitat enhance- management systems for health, safety, environment and the community ing, as examples: ment or management. Monitoring during that are consistent with internationally recognized standards and enable Reforestation and operations and closure verify that con- us to...care for the environment and value cultural heritage." Green Areas trols are adequate or that further controls "BHP Billiton operations worldwide recognize and value diversity, both Program are required. Routine audits assess the in the natural and among peoples... This means recognizing, respect- Natural adequacy of existing controls and help ing and valuing biodiversity..." Resources identify where further protection opportu- Conservation nities exist. Because mining, by its nature, Program causes land disturbance; Barrick's policy Program to is to minimize the area affected by its finance the publi- activities and to reclaim all disturbed cation of biodi- areas as soon as practicable. Site versity books." restoration includes contouring the land, replacing topsoil, and seeding to re- establish the native flora. Monitoring veri- fies the effectiveness of these efforts." "While most operations have no discharge The company states that it has "[a]n overriding commitment to health, "We must make to surface waters, those in higher rainfall safety, environmental responsibility and sustainable development." efficient use of areas must discharge treated waters to "We commit to continual improvement in our performance, efficient natural resources maintain internal water balances." use of natural resources and aspire to zero harm to people and the and energy and "Potential air emission sources are environment." actively pursue assessed at all operations prior to their The company states that it works to "[d]evelop , implement and main- waste and emis- development. Measures to avoid or con- tain management systems for health, safety, environment and the com- sions reduction." trol air emissions and potential impacts munity that are consistent with internationally recognized standards from those emissions are incorporated and enable us to...set and achieve targets that include reducing and into project design and operations. preventing pollution." Monitoring during operations as well as The company has established 5% intensity reduction target for GHG routine audits verify that controls are ade- between 2002 and 2007. quate or that further controls are required. The company has established reporting methodologies consistent with Performance is reported to management the Greenhouse Gas Protocol of the WBCSD and the WRI. routinely." The company aimed to have GHG management programs in place at all sites of +100,000 tonnes of CO2 by June 30, 2003. The company has been a member of the Greenhouse Challenge since 1995 and it has exceeded the established 10% target. E N V I R O N M E N T A L S T A N D A R D S 305 CRS_Annex E 3/3/04 12:16 Page 306 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Biodiversity "Natura 2000 network require- The company "acknowl- ICMM holds that companies should: (Continued) ments should be complied edge[s] that certain areas "contribute to conservation of biodiversity with." may have particular ecologi- and integrated approaches to land use Nature Conservation cal or cultural values as well planning; Directives on Birds and as development potential respect legally designated protected Habitats and, in such instances, con- areas; sider these values along disseminate scientific data on and promote with the economic, social, practices and experiences in biodiversity and other benefits resulting assessment and management; from development." support the development and implementa- tion of scientifically sound, inclusive and transparent procedures for integrated approaches to land use planning, biodiver- sity, conservation and mining." Emissions (Continued) EU Directives on air quality 306 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 307 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Companies must ensure that they make a firm MCA's 2000 CEM encour- MAC states that it is "[s]eeking to minimize commitment to putting various areas off limits to ages companies to "[apply] the impact of our operations on the envi- both exploration and mining. These should include ecological principles that ronment and biodiversity." all world heritage listed areas, all national parks, recognize the importance of conservation reserves, international sites (such as biodiversity conservation." Ramsar sites) and most areas listed for indigenous cultural reasons. Where possible there should be buffer areas around such parks and reserves." "All companies should operate according to the precautionary principle, which provides that in the event of doubt about the potential impacts of an action or operation, the company should avoid taking that course of action, in particular." "Mining or exploration should only occur where a company can demonstrate that such activity will not jeopardise the long-term viability of a species, ecosystem or the health of landowners and employees." "A pro-active approach to minimising risk should be adopted." "Companies should ensure that all mining operations adhere to the principle of intergenerational equity." MAC states that it will "develop, design and NMA states that it is committed to operate facilities based upon the efficient "[r]ecognizing the potential for cli- use of energy, resources and materials." mate change is a special concern of Development of Climate Change Principles global scope that requires signifi- cant attention and a responsible approach cutting across all three of the sustainable development pillars: environmental, social and eco- nomic" and "[s]upporting...volun- tary programs to improve efficiency and reduce greenhouse gas emis- sion intensity." E N V I R O N M E N T A L S T A N D A R D S 307 CRS_Annex E 3/3/04 12:16 Page 308 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Biodiversity "There are typically no universally applicable or The company has established the following "We operate in areas sometimes vulnerable (Continued) relevant standards to draw upon for the protec- objective with regards to its "environmental to industrial activity. This gives us a special tion of terrestrial, aquatic and marine environ- footprint": responsibility to help preserve biological ments. As such, Newmont aims to protect "To track the area of land currently disturbed, diversity in these areas. We will contribute to aquatic, terrestrial and marine environments new land disturbed and land restored each sustainable industrial activity and therefore based on site-specific, risk-based water dis- year." take consideration the impact of our opera- charge standards. The risk-based approach is tions on the biological diversity of the areas required to address the potential pathways of within which we operate." pollutants from Newmont facilities to the applic- able environmental receptors. Again, the oper- ating site must always comply with the host country's laws and regulations." Emissions (Continued) "Newmont believes that promoting and main- The company has established the following "Our climate gas emissions in 2002 amounted taining high standards of environmental man- objective with regards to acid gas emissions: to 28.6 million tonnes/CO2e [CO2 equivalents] agement, particularly in the conservation of "90% sulphur fixation." in 2000--a reduction of roughly 15 percent natural resources, and the prevention of emis- compared with 1990. . . Some [new techno- The company participates in Canada Voluntary sions to land air and water, is an integral part of logical] measures are expected to be imple- Challenge and Registry (VCR). its business." mented in the course of the next few years, "Emissions to air are also required to comply while others will not be realized until major with the host country's laws and regulations. refurbishment and investment projects are Where those laws are non-existent, inadequate, implemented in the long term. Some of these or incomplete, US EPA national ambient air proposals are still at the research and devel- quality standards will be used." opment phase. Competitive investment pro- jects are required to accomplish these measures." 308 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 309 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. The company states that it complies with the Resource Conservation and Recovery Act. The company is a signatory to the The company states that it complies "This is the fourth year we have reported Greenhouse Challenge. The company with the Clean Air Act. publicly on the estimates of our carbon has reduced emissions by 3% and has 18 dioxide (CO2) GHG emissions. While the action plans to further reduce emissions. debate over the effect of GHG on global The Greenhouse Challenge ran from 1996 warming continues to evolve, Placer Dome to 2000. Pasminco is willing to re-sign, views any reduction of GHGs and its atten- provided a formal scheme is developed dant decline in energy consumption to be a which ensures that Pasminco will not be prudent management strategy." disadvantaged by having undertaken "We are committed to: measure, track, early voluntary action. report on GHG emissions; and report to national reporting systems where they exist." E N V I R O N M E N T A L S T A N D A R D S 309 CRS_Annex E 3/3/04 12:16 Page 310 Silangan Mindanao Union Cement Rio Tinto Group Exploration Company Teck Cominco Limited Corporation Biodiversity The company's "land management policy includes The company states that "Recognizes that its activi- (Continued) objective of maintaining ecosystem functions, biodiversity it is working to: ties may impact on the nat- and habitat." "conserve environmen- ural environment, including "Rio Tinto committed itself in 2000 to the development of a tal resources by incor- the diversity of flora and biodiversity strategy. The strategy process was outlined and porating environmental fauna and their habitats, progressed in 2001 with the identification and implementa- protection and rehabili- and therefore undertakes tion of four steps: tation during the plan- to design and operate its a survey of operations; ning stage and project projects to minimize these a wide consultation with external organisations; implementation; impacts. Upon closure, creation of an internal expert group; support and actively efforts are made to create preparation of a business case." participate with any a productive habitat for species identified near the "In 2002, the elements of the strategy were further devel- research work con- site." oped with the formation of three key working groups: ducted by any agency for the diverse steward- "[Through external evalua- an internal Steering Group to scope, commission and ship of flora and fauna tions, gaps in corporate review the elements of the strategy; in the locality." polices, management sys- an independent External Advisory Panel to advise the tems, and reporting were steering group and critique the strategy elements dur- noted, including: Adoption ing there development; of a biodiversity policy." different Working Groups are being drawn from an internal/external pool of experts to carry out tasks for the steering group." Emissions (Continued) In 1998, the company set emissions reduction targets as The company participates Corporate parent Holcim part of a Climate Change Program. The company in the Canadian VCR. Group has committed to expects to set new targets in 2003. Reductions have been 10% reducing CO2 emissions Participate in voluntary initiatives in Australia, New company-wide from base by 20% by 2010. Zealand, and the United Kingdom. year 1990. "Union [has committed] to implementing effective waste management and dust emission abatement programs." "The company has a con- tinuous emission monitor- ing system installed in [its] plants." "[The] Philippine emis- sions standard is 150-500 mg/Ncu.m.; [the] Union standard is more stringent 100 mg/Ncu.m." 310 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 311 World Coal WMC Resources Ltd. Institutexxviii International Standardsxxix The company states that it is working to "[c]onserve important populations of The World Coal Institute states IFC PPAH: The conservation of natural habitats, like other mea- flora and fauna that may be affected by our activities." that it is working to "minimise coal sures that protect and enhance the environment, is essential for "We work to understand population dynamics of significant species around production impacts on the bios- long-term sustainable development. IFC therefore supports the our sites and, where necessary, undertake programs to protect their popula- phere (land, water)." protection, maintenance, and rehabilitation of natural habitats tions and habitats." and their functions in its project financing and advisory activities. "Conservation of biodiversity is a global concern and communities, local and IFC supports, and expects project sponsors to apply, a precau- world wide, take a strong interest in the conservation of plants and animals. tionary approach to natural resource management to ensure Companies also have legal obligations to minimise impacts to flora and fauna. opportunities for environmentally sustainable development. Therefore, our performance on conserving biodiversity has a strong influence As part of a private sector project IFC supports natural on us retaining our `licence to operate'." habitat conservation, improved land use and the mainte- "The WMC Environment Policy specifically refers to the conservation of nance of ecological functions. Furthermore, IFC promotes important populations of flora and fauna." the rehabilitation of degraded natural habitats. "In WMC, we will: IFC does not support projects that, in IFC's opinion, involve the sig- determine landscape and visual characteristics for all new projects; nificant conversion or degradation of critical natural habitats. collect baseline data on flora, fauna and ecosystems in all new project developments; In deciding whether to support a project with potential adverse minimise disturbances by effective planning and design; impactsonanaturalhabitat,IFCtakesintoaccounttheprojectspon- monitor and manage to conserve biodiversity. This also means controlling sor'sabilitytoimplementtheappropriateconservationandmitigation introduced species in the areas affected by our operations; measures. If there are potential capacity problems with a project establish specific management plans for endangered or significant flora, sponsor, the project includes a component to build additional fauna and habitats; capacity for effective environmental planning and management. Consider aspects of biodiversity conservation in our rehabilitation and clo- World Bank Guidelines for Underground Mining and Milling: sure plans." Measures required to prevent access by wildlife and livestock to openwaterwherecyanideconcentrationsexceedcertainlevels. The company states that it is working to "[c]ontinually improve our environmental The World Coal Institute states that IFC PPAH: Limitations on concentration of contaminants performance, including reducing the effect of emissions, developing opportuni- it is working to "significantly in the air, measured outside the project property bound- ties for recycling, and more efficiently using energy, water and other resources." reduce `per unit' emissions from the ary exist--for Particulate Matter (<10 _m), Nitrogen "WMC Resources participates in the Australian Government's Greenhouse Challenge production and use of coal." Oxides, Sulfur Dioxide. (Open Pit Mining Stds). program, part of which requires that we submit an annual report on our progress in "Continuing reductions in emissions Noise Abatement policies for mines. reducing carbon dioxide emissions. WMC's approach to GHG has been to examine our throughacceleratedtechnologyimprove- IFC PPAH--Guidelines for Base Metal and Iron Ore greenhouse emission sources and seek to reduce them through improved operating mentandtransferarethekeytoeffective, Mining: extensive emissions guidelines. practices, process efficiency improvements, fuel substitution and new equipment." least cost solutions to sustainability and IFC PPAH--Guidelines for Coal Mining and Production: "In WMC, we will: climate change issues, and is the indus- extensive emissions guidelines. determine the baseline meteorological and air quality characteristics for all try's major priority for the future." World Bank Environment, Health, and Safety Guidelines new projects; "Legally binding reduction targets could for Open Pit Mining and Milling and Guidelines for identifyallpotentialsourcesofcontaminantssuchasdust,GHGs,volatileorganiccom- affect countries' economic and trade Underground Mining and Milling: Standards for liquid pounds, ozone depleting substances, sulphur dioxide, and other gases and odours; competitiveness--and could lead to effluents and for contaminants emitted into ambient air. consult with interested parties on air management strategies; the transfer ("flight") of emissions, have an air emissions management plan, including a monitoring strategy, to investment and jobs to countries where prevent or minimise environmental impact; such restrictions or limits do not exist, give consideration to potential future reductions in emission or ambient air without a net environmental benefit. quality standards when designing and constructing our facilities; Policies introduced to achieve GHG tar- phase out the use of ozone-depleting substances." gets should seek to minimize these adverse impacts." E N V I R O N M E N T A L S T A N D A R D S 311 CRS_Annex E 3/3/04 12:16 Page 312 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Pollution Control The company has established the following goal: a and Hazardous "40% or more reduction in the number or magnitude Substances of chemical hazards exceeding Alcoa standards by year-end 2003." 312 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 313 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "[An overseas corporation must] "Potential environmental effects of "We commit to continual improvement in "Pollution prevention, enhancement [h]ave appropriate policies on mat- operations are assessed at all opera- our performance, efficient use of natural of the environment and continual ters of environmental safety, includ- tions prior to their development. In resources and aspire to zero harm to improvement in our environmental ing the handling of hazardous this way, measures to avoid or mini- people and the environment." performance are the fundamental materials and the prevention and mize effects are incorporated into "Employees and contractors are premises of our company's business." control of environmental accidents." project design and operations. This assessed for their fitness for work and includes pollution controls and haz- protected from health hazards associated ardous substance management. with their work. Community health issues Monitoring during operations as well associated with BHP Billiton operations as routine audits verify that controls are identified and effectively are adequate or that further controls management." are required." "The responsible production, transport, storage, use, recycling and disposal of BHP Billiton products and by-products is promoted to minimize their life cycle HSEC impacts." "Programs are in place to ensure that wastes are eliminated, reduced, re-used, recycled, treated, or properly disposed." E N V I R O N M E N T A L S T A N D A R D S 313 CRS_Annex E 3/3/04 12:16 Page 314 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Pollution Control and "EU Council Directive The company states that it Hazardous Substances 96/61/EC on integrated pollu- will "[r]eview and take (Continued) tion prevention and control account of the environmen- (IPPC) covers minerals pro- tal effects of each activity, cessing, including installa- whether exploration, mining tions for the production of or processing; and plan and non-ferrous crude metals conduct the design, devel- from ore." opment, operation, and clo- sure of any facility, including pollution control systems, in a manner that optimizes the economic use of resources while reducing adverse environmental effects." 314 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 315 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Companies should not mine high sul- MCA's 2000 CEM encourages com- MAC states that it is "[s]eeking to minimize phide ore-bodies unless steps are in panies to "[s]afely dispos[e] of any the impact of our operations on the envi- place to prevent the effects of AMD." residual wastes and process ronment and biodiversity." "Companies should not be involved in residues" and to "[promote] the safe the mining, milling or processing of use, handling, recycling and disposal uranium." of our products through an under- "Companies must ensure that pollu- standing of their life cycle." tion of riverine, ground-water and MCA's Tailings Management: Draft marine environments does not occur Strategic Framework (2000) has been from waste rock dumps. (Cites to finalized and is now the Basel Convention, Stockholm MCA/MEMPR Strategic Framework Declaration, Law of the Sea)." for Tailings Management, 2003. "Companies should ensure that all environmental costs involved in min- ing, milling, transport and processing of minerals should be borne by the company as polluter/generator and should include these costs as part of their feasibility assessment. These should include all external costs such as impacts on recreational values or tourism, costs of remediating acci- dents and other associated social costs. Advance compensation agree- ments should be negotiated, where appropriate." "Companies should prepare a plan to deal with a range of potential acci- dents and environ-mental emergen- cies associated with mining. These should include off-site activities such as transport." E N V I R O N M E N T A L S T A N D A R D S 315 CRS_Annex E 3/3/04 12:16 Page 316 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Pollution Control and The company has established a "program to safely "We will minimize waste and ensure safe Hazardous Substances manage handling & processing of beryllium." destruction or disposal of production waste (Continued) "Noranda is reducing waste generation by where reuse or recycling are not practicable." selecting mine designs and technologies that minimize waste stripping, avoid ore dilution and maximize separation efficiency...Noranda also seeks to reduce the volume of waste stored at its operations and to eliminate hazardous char- acteristics by reprocessing refinery by-prod- ucts at other facilities and through on-site treatment." 316 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 317 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. The company has developed principles on water and cyanide management, and ARD and metal leaching. E N V I R O N M E N T A L S T A N D A R D S 317 CRS_Annex E 3/3/04 12:16 Page 318 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited Pollution Control and The company's waste management objectives "[C]onduct its operations in a sound environ- Hazardous Substances include: mental manner, seeking to continually (Continued) "eliminate hazardous waste to the greatest improve its performance and incorporate extent possible; policies for pollution prevention and waste ensure the physical and chemical stability of minimization into its daily actions." final disposal; every year collect information about emis- sions at each operation so that appropriate emission reduction programmes, projects and targets can be developed and implemented." 318 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 319 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix The company's pollution "In WMC, we will: The World Coal IFC PPAH, (Open Pit Mining Standards): Policies on Tailings control initiatives are a establish baseline data on soil quality for Institute states that it Disposal, Liquid Effluents, Ambient Air, etc. part of its larger EMS. all new projects; is working to "min- IFC PPAH--Guidelines for Base Metal and Iron Ore Mining: minimise contamination by effective imise coal produc- "Liquid effluents, including tailings dam outflows, should be mon- planning, design and operation of all tion impacts on the itored daily for pH and suspending solids. Metals and, when facilities; biosphere (land, appropriate, thiosalts and floatation chemicals should be moni- develop remedial action plans for identi- water)." tored on a monthly basis." fied contaminated sites , based on a risk IFC PPAH--Guidelines for Coal Mining and Production: "All assessment; wastewater discharges should be monitored weekly for pH, total take remedial actions progressively for suspended solids, and oil and grease. A full analysis covering contaminated sites to ensure that little iron and other trace metals should be carried out quarterly." needs to be done at closure; Organizations that produce, handle, store, transport and dispose of consult with interested parties on man- hazardous materials (chemicals, gases, vapors, fumes, dust, fibers, agement strategies for contaminated etc.) shall in addition to the present guidelines fulfill the require- sites." ments of the IFC Hazardous Materials Management Guidelines. IFC General Guidelines: The employer shall avoid the use of any "In WMC, we will hazardous substance by replacing it with a substance that under establish an inventory of all environmen- its normal conditions of use is not dangerous or less dangerous to tally hazardous materials at all storage, the workers, if the nature of the activity so permits. Precautions transfer and operating facilities; must be taken to keep the risk of exposure as low as possible. develop and put to work plans to min- IFC Open Pit Mining Standards: Recommended target guidelines imise environmental impacts from stor- exist for residual heavy metals concentration, with definite numeri- age, transfer and use of all cal limits OR up to 110% of naturally occurring levels--for Arsenic, environmentally hazardous materials; Cadmium, Chromium (Hexavalent), Chromium (Total), Copper, Iron investigate opportunities to progressively (Total), Lead, Mercury, Nickel, Zinc. Target guideline for discharge reduce the quantities of hazardous mate- of Free Cyanide, Total Cyanide, and Weak Acid Dissociable. rials and encourage the use of less haz- World Bank Environment, Health, and Safety Guidelines for Open ardous ones; Pit Mining and Milling and Guidelines for Underground Mining for liquids, provide secondary contain- and Milling: Standards for the disposal of sewage sludge. ment if there is a potential for significant World Bank Environment, Health, and Safety Guidelines for Open environmental impact; Pit Mining and Milling: "Solvents and similar hazardous materials ensure that below-ground storage tanks must not be disposed of in a manner likely to result in soil or and their pipelines have double skins or groundwater contamination if groundwater is potentially useable cathodic protection, and a monitoring for potable water or irrigation purposes"; "Waste rock dumps system; should be designed and engineered so that materials with high establish a program to decommission or potential to generate acid leachate are isolated from oxidation or upgrade all current below-ground stor- percolating water." age tanks that do not have double skins Basel Convention on the Control of Trans-boundary Movements or cathodic protection, and a monitoring of Hazardous Wastes and Their Disposal, works to reduce the system; movement of hazardous wastes, to ensure that wastes are dis- put to work a spill prevention and posed of as closely as possible to where they were produced, response plan." and to minimize the generation of hazardous wastes in terms of quantity and level of hazardousness. E N V I R O N M E N T A L S T A N D A R D S 319 CRS_Annex E 3/3/04 12:16 Page 320 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Waste Management "Any waste material left over from our operations must be disposed of legally and in a way that meets the company's environmental policy." The company has established the following goals: 50% reduction in landfilled waste by 2007; $100 million annual environmental and energy cost savings by 2006 through elimination of wastes and design for sustainability. Suppliers The company states that it works to The company states that it "[p]urchase[s] in sup- "[c]onsider and establish appropriate EHS port of EHS values." requirements when selecting business part- ners and contractors." 320 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 321 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "All waste streams from each opera- "We commit to continual improvement in our per- The company has a waste tion are characterized, potential formance, efficient use of natural resources and management program. impacts identified and management aspire to zero harm to people and the environment." strategies developed to ensure "HSEC targets reference requirements for waste proper handling and management to minimization programs along with aggregate reduc- minimize environmental impact and tion targets." ensure regulatory compliance." "The responsible production, transport, storage, use, recycling and disposal of BHP Billiton products and by-products is promoted to minimize their life cycle HSEC impacts." "Programs are in place to ensure that wastes are eliminated, reduced, re-used, recycled, treated, or properly disposed." "All products are reviewed and The company states that it works to "[c]ommuni- approved prior to being brought onto cate with, and engage employees, contractors, an operation in order to determine business partners, suppliers, customers, visitors their potential environmental impacts and communities to...share responsibility for meet- and to ensure that appropriate man- ing the requirements of [its HSEC policy]." agement controls are in place to min- "Recruitment and selection criteria of employees and imize environmental risk." contractors include an assessment of HSEC aware- ness, competencies, behaviors and performance." "The contracting of services, the purchase, hire or lease or equipment and materials, and activities with partners, are carried out so as to minimize any adverse HSEC consequences and, where possible, to enhance community development opportunities." "Suppliers, contractors, and partners are evaluated and perform according to HSEC Management Standards." E N V I R O N M E N T A L S T A N D A R D S 321 CRS_Annex E 3/3/04 12:16 Page 322 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Waste Management "EU Council Directive 99/31/EC "Freeport has established a ICMM holds that companies should: (Continued) lays down requirements for comprehensive waste man- "facilitate and encourage responsible the authorization of landfills, agement system based on product design, use, re-use, recycling and the technical construction of principles of reuse, recy- disposal of our products; landfills, the types of waste cling, and reduction. Waste provide for safe storage and disposal of acceptable at landfills, and segregation for hazardous residual wastes and process residues." the monitoring procedures for waste, inert waste, landfills--including tailing biodegradable wastes." ponds." The company states that it "EU Council Directive will "[p]romote responsible 75/442/EEC & 91/156/EEC stewardship and recycling requires Member States to efforts of its products" and take the necessary measures "[a]ccept the responsibility to ensure that waste from of supporting resource con- prospecting, extraction, treat- servation and sustainable ment, & storage of mineral development in all opera- resources & the working of tional areas." quarries is recovered or dis- posed of without endangering human health & without using processes or methods which could harm the environment." Suppliers (Continued) ICMM holds that companies should: "encourage customers, business partners and suppliers of goods and services to adopt principles and practices that are comparable to our own." 322 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 323 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Companies must recognise and take action to prevent MCA's 2000 CEM encour- MAC states that it is "[c]ontributing NMA states that it is committed to any type of ocean and/or riverine tailings disposal that is ages companies to to global initiatives to promote the "[p]romoting the safe use, recycling not acceptable. Companies should recognise that min- "[employ] production production, use and recycling of and disposal of products through an eral deposits must not be developed unless tailings con- processes that are efficient metals and minerals in a safe and understanding of their life cycles." tainment is available and acceptable, from safety and in their consumption of environmentally responsible man- other perspectives." energy, materials and nat- ner." "Companies that are vertically integrated companies, ural resources" and to MAC also states that it will should produce reports showing how the company is "[minimize] wastes through "develop, design and operate facil- achieving recycling of metal products. Non-vertically inte- recycling, and by reusing ities based upon the efficient use grated companies (i.e. mining companies without manufac- process residues." of energy, resources and materi- turing/retailing arms) should demonstrate agreements with als." other companies which set out goals for metals recycling targets of goods produced from company minerals." "Companies should set goals for waste minimisation, recycling and life cycle targets for minerals/mineral products." "In order to ensure that companies properly control wastes all mines should ideally be required to conform to a closed loop system. Where any waste, other than tail- ings, (eg sewage) are discharged water intakes for the mine should be located downstream of waste discharge points, so as to ensure that the company does not dis- charge wastes that are unacceptable for further use." E N V I R O N M E N T A L S T A N D A R D S 323 CRS_Annex E 3/3/04 12:16 Page 324 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Waste Management "Noranda is reducing waste generation by "We will encourage reuse and recycling of (Continued) selecting mine designs and technologies that our products." minimize waste stripping, avoid ore dilution and maximize separation efficiency...Noranda also seeks to reduce the volume of waste stored at its operations and to eliminate hazardous char- acteristics by reprocessing refinery by-prod- ucts at other facilities and through on-site treatment." Suppliers (Continued) "Based on our main environmental chal- lenges we will influence our partners to per- form in accordance with our policy [and] set environmental requirements for selection and follow-up of suppliers and contractors." "We will emphasize care for the environment in our selection of suppliers." 324 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 325 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. In the company's Environmental Policy, it "We promote energy efficiency and The company states that it works The company has developed principles on pledges to "seek continuous improve- maximize responsible recycling and to "[c]oordinate closely with con- Tailings management. ment in environmental performance, pro- resource recovery." tractors, suppliers, government duction processes, waste management agencies and other organizations and the use of resources." to ensure the safe handling and proper disposal of all materials, for the protection and enhance- ment of the environment." In the company's Environmental Policy, it pledges to "inform our customers and suppliers of our aim and of their responsi- bilities in relation to our business." E N V I R O N M E N T A L S T A N D A R D S 325 CRS_Annex E 3/3/04 12:16 Page 326 Silangan Mindanao Rio Tinto Group Exploration Company Teck Cominco Limited Waste Management "Efficiency targets for non-mineral wastes are "[C]onduct its operations in a sound environ- (Continued) feasible and the three R's--reduce, reuse and mental manner, seeking to continually recycle - have been a focus of many Rio Tinto improve its performance and incorporate businesses to date. policies for pollution prevention and waste The objectives of our management of waste are minimization into its daily actions." to: "[E]ncourage the safe use, reuse and recy- ensure the physical and chemical stability of cling of its products." final disposal; The company has adopted "Reuse, Recycle, minimise the footprint of mineral waste dis- Reduce" programs for large volume liquid posal; and solid wastes. reduce non mineral waste; eliminate hazardous waste to the greatest extent possible." Suppliers (Continued) "Group Procurement will inform prospective suppliers that Rio Tinto `views favourably' those suppliers with a proactive programme on cli- mate change." "Exact language to be included in bid instruc- tions is being developed and this language will be available for all Group businesses' procure- ment policies." 326 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 327 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix "Union [has commit- The company states that it is working to IFC PPAH: Sewage sludge must be disposed of in an environmentally acceptable ted] to implementing "[c]ontinually improve our environmental way in compliance with local laws and regulations. Project sponsors are encour- effective waste man- performance, including reducing the effect aged to evaluate the environmental and health implications of using sewage agement and dust of emissions, developing opportunities for sludge in reclaiming tailings deposits, waste rock dumps, and mined out areas. emission abatement recycling, and more efficiently using IFC PPAH--Guidelines for Base Metal and Iron Ore Mining and Guidelines for Coal programs." energy, water and other resources." Mining and Production: "Minimization of AMD generation by reducing disturbed The company states "In WMC, we will: areas and isolating drainage streams from contact with sulfur-bearing materials" its waste manage- characterise and prepare inventories of IFC PPAH--Guidelines for Coal Mining and Production: "Minimization of ment program all wastes and residues; spillage losses by proper design and operation of coal transport and trans- includes the reduc- prepare management plans that include fer facilities"; "Reduction of dust by early revegetation and by good mainte- tion of "the genera- procedures for handling, storage, trans- nance of roads and work areas"; "Control of methane...to less than 1% by tion of wastes by portation and disposal of wastes and volume, to minimize the risk of explosion in closed mines; recovery of preventing production residues; methane where feasible." rejects, reusing and minimise waste by using the principles IFC Open Pit Mining Standards: If recycling or reclaiming is not practical, recycling materials of source reduction, substitution, reuse, wastes must be disposed of in an environmentally acceptable manner and in where applicable, recycling/recovery, reprocessing, treat- compliance with local laws and regulations. and...treating and ment and disposal; World Bank Environment, Health, and Safety Guidelines for Open Pit Mining and disposing properly all use licensed facilities for hazardous Milling and Guidelines for Underground Mining and Milling: Encourages project wastes we generate." waste disposal; sponsors "to recycle and reclaim materials where possible"; "On-land tailings design, locate, operate and monitor our impoundment systems must be designed and constructed in accordance with waste and residue facilities to minimise internationally recognized engineering practices, local seismic conditions, and environmental impact." precipitation conditions. On-land disposal systems should be designed to isolate acid leachate-generating material from oxidation or percolating water." The company states that it is working to "[p]romote safety, health and environ- mental awareness among our employ- ees, suppliers, con- tractors and immediate commu- nities." E N V I R O N M E N T A L S T A N D A R D S 327 CRS_Annex E 3/3/04 12:16 Page 328 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Transport Monitoring and The company states that it "[audits] opera- "Alcoa has long had an independent, global, The company works to "[m]onitor, review Compliance tions and business practices at regular inter- Internal Audit Department (IAD). The Vice and confirm the effectiveness of manage- Framework vals to assess EHS performance and President-Audit meets privately with the Audit ment and workplace performance against compliance. With annual objectives that Committee at least four times per year. The IAD is divisional and company standards, objec- include accident reduction and goals for responsible for providing Financial, IT, tives, targets and applicable legal require- high-level plant hygiene and housekeeping, Environmental and Health and Safety audits in all ments. Key to this process is a system of SHE performance is regularly assessed at Alcoa locations across the world. The group's appropriate audits and progress reports to each facility. This is accomplished through focus is to assess risk across the company, apply divisional management couples with regular compliance and best practice audits using audit resources to address those risks, and develop report to the board of directors." external consultants at least once every recommendations to close any gaps that are 3 years." detected as a result of an audit. IAD is also charged with implementing the Alcoa Self Assessment Tool, a type of self-audit that is required to be performed at least once every 18 months by every Alcoa loca- tion or administrative process worldwide." 328 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 329 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Product suppliers are required to "Responsible production, transport, stor- transport materials to sites in a safe age, use, recycling and disposal of BHP manner and to have in place effective products and by-products is promoted to emergency response capacity." minimize their life cycle HSEC impacts." "An overseas corporation must monitor "As part of Barrick's continuous The company conducts external and The company has established specific and assess its compliance with the improvement effort, EMS are rou- internal audits of HSEC data and has country programs, such as safety objectives it has established." tinely benchmarked against interna- systems and procedures in place to audits and risk analyses. "An overseas corporation must: tionally accepted best practices and process the data. collect and evaluate information codes of practice. ... Barrick con- "HSEC performance and systems are regarding the environmental impacts ducts internal as well as external monitored, audited and reviewed to of its activities at least once every audits and reviews during the design, identify trends, measure progress, 12 months; operation, and closure of our mines assess compliance and drive continuous establish objectives for the measure- to confirm that operations meet or improvement." ment of its environmental performance; exceed local and international stan- "HSEC performance is regularly mea- monitor and assess its compliance dards." sured, monitored, recorded and ana- with these objectives; "Each operation is expected to have lyzed with results reported to provide timely information to its monitoring systems in place to track stakeholders as appropriate." employees and to members of the the effectiveness of existing controls "HSEC site inspections and audits; public in any place in which it under- and to identify areas requiring addi- annual self-assessments; annual man- takes activities on the actual and tional controls. Routine reporting sys- agement reviews of existing systems; potential environmental impacts of tems are in place to inform audits conducted every 3 years at all the activities of the corporation." management of performance and sites by audit teams comprised of audi- corrective action status. A corporate tors who are independent of the part of Before 31 August each year, an over- audit program routinely reviews each the organization being audited; seas corporation must...lodge with the operation to ensure that systems are Performance improvement plans are Australian Securities and Investments in place and their effectiveness." prepared to address non-conformances Commission a Code of Conduct and executed following each audit." Compliance Report.vii "the report will be given to Parliament by the Securities and Investments Commission."viii E N V I R O N M E N T A L S T A N D A R D S 329 CRS_Annex E 3/3/04 12:16 Page 330 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines)x Commission (EC)xi Copper & Gold Inc. Mining & Metals (ICMM) Transport (Continued) Monitoring and The company states that it ICMM holds that companies should: Compliance will "[c]onduct regular envi- "implement effective and transparent Framework (Continued) ronmental reviews, assess- engagement, communication and indepen- ments and audits and act on dently verified reporting arrangements the results." with our stakeholders; "As prescribed in the report on our economic, social and envi- Freeport Environmental ronmental performance and contribution to Auditing Protocol, major sustainable development; operational facilities are to provide information that is timely, accurate continue to be internally and relevant; audited on an annual basis. engage with and respond to stakeholders Smaller facilities, with through open consultation processes." senior management concur- rence, can be audited on a biannual basis. Periodic, external audits may also be deemed appropriate for cer- tain facilities by Freeport Senior Management. The formal auditing protocol covers all aspects of envi- ronmental management, programs, controls and treatment facilities." 330 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 331 Mineral Policy Institute (MPI)-- Principles for Conduct of Company Minerals Council Mining Association National Mining Operations within the Minerals Industry of Australia (MCA)xiii of Canada (MAC) Association (NMA) "Companies should identify mechanisms by which all the environmental and social costs involved in the transport and trade operations can be avoided or minimised." "Companies should establish baseline monitor- MCA's 2002 CEM encourages the: MAC states that it will ing programs at a very early stage." "production of annual public environment report "[r]equire contractors and "Companies should allow an ongoing process of within two years of registration; suppliers to comply with independent transparent monitoring of their completion of annual code implementation survey corporate environmental operations, including the impact of company to assess progress against implementations of requirements and work operations on environmental, labour, human, code principles; cooperatively with suppli- civil, political and social rights." verification of survey results, by an accredited ers to identify opportunities "Companies should have regular and indepen- auditor, at least once every three years." to improve environmental dent audits of their operations carried out by performance." MCA's 2000 CEM requires the: independent auditors, which include represen- tatives nominated by relevant stakeholders." "setting and regularly reviewing [of] environmen- "Companies must recognize that design and tal performance objectives and targets that build implementation of the independent monitoring upon regulatory requirements and reinforce policy and auditing should be jointly designed by the commitments; company in consultation with representatives of monitoring and verifying environmental perfor- communities and NGOs." mance against established criteria so that "Companies must report the results of auditing progress can be measured; and monitoring programs in annual reports pre- benchmarking against industry performance and pared and verified by an independent auditor addressing changing external expectations; agreed to by stakeholder representatives." providing timely and relevant information including "Companies should support the establishment publication of annual public environment reports of an independent and accessible complaint on our activities and environmental performance; mechanism, to which communities who feel that encouraging external involvement in monitoring, the industry's standards have been breached by reviewing and verifying our environmental a particular mine can bring complaints." performance." "As with the CEM, companies are not required to adopt the [Mine Closure] Policy as an internal policy, but should seek to ensure that its principles are reflected in internal policy, strategy and procedures." E N V I R O N M E N T A L S T A N D A R D S 331 CRS_Annex E 3/3/04 12:16 Page 332 Newmont Mining Corporation Noranda Inc. Norsk Hydro ASA Transport (Continued) "We will design our products to have the minimum adverse effect on the environment throughout their entire life cycle. (environ- mental principles). This also implies optimiza- tion of transport internally and externally." Monitoring and "According to an extensive criterion [in cate- The company states that it "conduct[s] regular "The reporting of incidents is important from Compliance gories of safety, community relations and envi- assurance audits and self-evaluations of our the point of view of accident prevention. All Framework (Continued) ronment], the Five-Star Assessment process management systems, programs and activities." accidents will be investigated in order to assesses performance against a series of The company states that it provides "[d]etailed identify the causes and how one may prevent defined levels or stars. The minimum standard information...to many organizations that scruti- a repetition. We are especially keen to required by all Newmont operations is three nize social, environmental, and economic perfor- improve the reporting of near-misses. This is stars, which the Company believes is represen- mance, including EthicScan, Michael Jantzi important from when it comes to eliminating tative of sound, responsible performance. Research Associates, Fiducie Desjardines, dangerous conditions, norms and behaviour Defining targets beyond its minimum require- PricewaterhouseCoopers, [and] Environics." so that accidents do not take place. In 2002 ment (four and five stars) promotes continual we considerably improved our reporting of improvement." near-misses. We are working actively to "As indicated in the mission statement, mini- identify individual and group behaviour in the mization of environmental risk is the responsi- organization. The aim of this process is to bility of all personnel at Newmont." find out the norms that need to be estab- lished and implemented, as well as to focus on the consequences of careless behaviour." 332 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 333 Phelps Dodge Pasminco Limitedxvi Corporation Philex Gold Inc.xviii Placer Dome Inc. The company has a "[c]omprehensive The company provide public envi- "Our sustainability policy ensures we will: audit program for safety, including self- ronmental reports on its website. establish credible monitoring and verifica- evaluation by site, independent audits by tion programs to measure impacts and off-site in-house; [and] external audits ensure compliance with legal requirements integrated with environmental audits." and with our sustainability policy, and com- The company adheres to the "Australian municate the results in an effective manner." Minerals Industry CEM" and issues The company is currently developing inter- reports on the implementation of the nal benchmarks to assist in monitoring its Code's seven principles. environmental performance. The company self-assesses the implemen- tation of its sustainability policy. The company is exploring a partnership with the World Wildlife Fund for Nature's (WWF Australia) "Mining Certification Evaluation Project" as independent certification of environmental and social performance. E N V I R O N M E N T A L S T A N D A R D S 333 CRS_Annex E 3/3/04 12:16 Page 334 Silangan Mindanao Exploration Rio Tinto Group Company Teck Cominco Limited Transport (Continued) Monitoring and "Wemeasureassurancethroughoperational,corporateandexternalauditingandreportingprocesses." "Conduct regular environmental, Compliance "Internal Assurance Systems: health, safety and emergency pre- Framework (Continued) HSE audits of policy, systems, programmes and performance. These include regulatory paredness audits and identify and and system certification audits. Regular inspection programmes provide additional assur- resolve all short-comings." ance as part of routine management; "Teck Cominco's corporate audit pro- social audits, which commenced in 2001. The guidelines were introduced in 2000; gram is based upon the EHS Policy tailings facility inspections, which are conducted by an external geotechnical expert, and Procedures Audit Manual which every two years." was formally approved for adoption in 2002. The audit program serves to: "Assurance activities: reviews of each business every four years to assess the Group's ability to meet growing identify EHS risks at business units HSE and social requirements; and other business activities so that safety audits conducted against Group minimum standards; appropriate steps can be taken to risk engineering audits conducted for insurers annually; reduce and manage these risks; HSE [health, safety and environment] risk reviews of identified specific concerns such as assess regulatory compliance and cyanide management and smelter operations; conformance of business; completion of an annual internal assurance questionnaire by all managing directors to affirm assess health and safety practices; that their business has established and maintained effective systems of internal control." assess the level of conformance to each business unit's own EHS pol- The overall objective of the assurance process was to enhance the transparency and account- icy and EHS management system; ability of Rio Tinto's performance on social and environment issues by providing assurance that assess the adequacy of EHS man- the material in the annual Social and environment review is relevant, complete and accurate, agement systems at business and that Rio Tinto's policies and programmes are reflected in implementation activities at opera- units in accordance with Teck tions. Environmental Resources Management (ERM) was selected to undertake this component. Cominco's EHS Management Verification of data had been undertaken by Arthur D. Little (ADL) for six years, until it was Standards and industry good acquired by ICF Consulting in 2002, which has continued with data verification since then. management practices; In the 2000 Social and environment review, Rio Tinto committed itself to implement a dual track cntribute to the company's objectives verification process for external reporting to address data quality and engage an external veri- of EHS protection and continual fier for appraisal of Rio Tinto's overall programmes. improvement through performance of Rio Tinto recognises there is no agreed standard for verification of social and environment per- business units as outlined in the formance. A number of companies are adopting and evolving their approaches to identify what Charter of Corporate Responsibility is an appropriate approach and it is a topic still being debated by the Global Reporting Initiative. and Code of Business, Environmental The primary focus for external assurance of our programmes is with local communities and and Health and Safety Practices; businesses have a number of approaches to consultation. These include providing local report to senior management com- communities with opportunities to comment on the local social and environment reports. mittees on progress toward the At a Group level, the approach covers three components: verification of data quality; assur- realization of corporate objectives ance of this annual Social and Environment Review; and engagement with organisations for on EHS."xxiv policy and programme development on specific issues.xxii 334 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 335 Union Cement World Coal Corporation WMC Resources Ltd. Institutexxviii International Standardsxxix The Holcim Group [corpo- The company reports to the public on its confor- IFC Environmental Guidelines for Health & Safety: rate parent] monitors and mance with the Australian Minerals Industry CEM. Annual report to IFC required on OHS to include reports CO2 emissions In 2002, the company produced reports on land dis- host country regulatory compliance and OHSMS according to the WBCSD turbance, water, energy, emissions. reporting; periodic audits and management [World Business Council The company states that it is working to "[a]ssess reviews. for Sustainable the potential environmental effects of our activities, IFC: Mandatory public disclosure of EA reports; Development] Carbon and regularly monitor and audit our environmental during project implementation, the project sponsor Dioxide Protocol for the performance." reports on compliance with: (a) measures agreed cement industry. with IFC on the basis of the findings and results of "The OH&S Audit Protocol the EA, including implementation of any EAP, as measures the OH&S per- set out in the project documents; (b) the status of formance of group compa- mitigatory measures; and (c) the findings of moni- nies and their progress toring programs. towards reaching the UN Norms: Transnational corporations "shall be OH&S targets." subject to periodic monitoring and verification by UN, other international, and national mechanisms, already in existence or yet to be created, regard- ing application of the Norms. This monitoring shall be transparent, independent, and take into account input from stakeholders (including NGOs) and as a result of complaints of violations of these Norms. Further, transnational corporations and other business enterprises shall conduct periodic evaluations concerning the impact of their own activities on human rights under these Norms." E N V I R O N M E N T A L S T A N D A R D S 335 CRS_Annex E 3/3/04 12:16 Page 336 Endnotes i Alcan Inc.'s Guiding Principles include: explore opportunities for the use of market-based emissions reduction mechanisms proposed in the Kyoto Protocol." "Ensure a working environment that motivates and supports all employees in their vi The reader should note that the full text of the company's code or policy on this particu- efforts to achieve zero work-related injuries and illnesses; lar issues has not been stated in full. This is due to space restrictions that a project of Minimize any adverse environmental impact from operations and business practices, this kind dictates. The reader may contact the company directly for any clarification. and use natural resources and energy more efficiently through the effective use of vii The Australian Parliament's Code of Conduct Compliance Report includes: management systems that continually improve EHS performance; Consider and establish appropriate EHS requirements when selecting business part- "A statement of any foreseeable risk factors that might arise a result of the activities ners and contractors; of the corporation in each country Audit operations and business practices at regular intervals to assess EHS perfor- A statement of the social and ethical policies of the corporation mance and compliance; Employee remuneration in each foreign country Comply with legal requirements and Alcan's internal standards; A statement of any contraventions of standards or laws relating to employment, Engage in open and transparent communication with stakeholders to achieve health and safety in each country greater environmental, health and safety understanding and to improve perfor- Any other matter relevant to employment, health and safety standards observed by mance." the corporation." ii The reader should note that the full text of the company's code or policy on this particu- viiiThe reader should note that the full text of the company's code or policy on this particu- lar issues has not been stated in full. This is due to space restrictions that a project of lar issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. this kind dictates. The reader may contact the company directly for any clarification. iiiAnglo American p.l.c.'s biodiversity management strategy includes: ix The reader should note that the full text of the company's code or policy on this particu- lar issues has not been stated in full. This is due to space restrictions that a project of "Developing the business case for biodiversity management; this kind dictates. The reader may contact the company directly for any clarification. Assigning resources, responsibilities and accountability for biodiversity management; x Analysis based on: Guidelines on Sustainable Development; and Euromines' website at Integrating biodiversity elements into business planning; www.euromines.org. Involving stakeholders in the development, implementation, monitoring and review of xi Analysis based on: European Commission's website at: biodiversity management plans; europa.eu.int/comm/index_en.htm. Implementing biodiversity training, awareness raising and education programs for xii "Relevant International standards include: management, employees, local communities and government agencies; Developing action plans to include biodiversity inventories, resources and systems, The 1972 Convention on the Prevention of Marine Pollution by Dumping of Wastes risk and impact assessment of activities on biodiversity, monitoring, and corrective and Other Matter (the London Convention) action program, and biodiversity criteria related to abandonment, closure and reha- The 1990 Convention for the Protection of the South Pacific Region (the South Pacific bilitation." Convention) and Protocol for the Prevention of Pollution of the South Pacific by iv Dumping (the South Pacific Protocol) The reader should note that the full text of the company's code or policy on this par- The Paris Convention for the Prevention of Marine Pollution from Land Based Sources, ticular issues has not been stated in full. This is due to space restrictions that a proj- 1974 Montreal Rules for Trans-frontier Pollution (the Paris Convention on LBS) ect of this kind dictates. The reader may contact the company directly for any The Convention on Wetlands of International Importance (the Ramsar Convention) clarification. v The World Heritage Convention With regards to its Climnate Change Policy, Anglo American p.l.c. will World Bank Guidelines for Mining "monitor and participate in international processes to consider ways of meeting the The Convention on EIA in a trans-boundary context challenges of climate change; Helsinki Rules on the Uses of Waters of International Rivers seek to understand stakeholder concerns about climate change; The International Council on Metals and the Environment Charter, 1993 collaborate in research and development programs to address the challenges of cli- The Berlin Guidelines: Mining and Environment Guidelines, 1991 mate change; The Business Charter Sustainable Development (International Chamber of strive for efficient use of energy and reduce greenhouse gas emission intensities at Commerce), 1991 its operations; Agenda 21, United Nations (UN) Conference on Environment and Development, 1992 incorporate climate change considerations in its business planning and foster coop- UN Revolving Fund for Natural Resources Exploration, 1973 eration between its operations in managing GHG emissions; UN Convention of the Law of the Sea 336 M I N I N G S E C T O R CRS_Annex E 3/3/04 12:16 Page 337 The Rio Declaration on Environment and Development, 1992 and maintaining excellence in safety is a never-ending process; injuries are not okay; to The Stockholm Declaration, 1972." achieve "zero injuries" we must go beyond legislative compliance xxi xiiiAnalysis based on: Code for Environmental Management (2000); Principles on Mine Placer Dome Inc.' Principles: Closure; Principles on Land Rights; Social Principles, Community Relations (under "Zero injuries is the only goal development); Best Practice in Environment Management in Mining; and MCA's web- Employees must be involved in developing safety practices site at www.minerals.org.au. Management provides leadership and direction in safety xiv The reader should note that the full text of the company's code or policy on this particu- Working safely is a condition of employment lar issues has not been stated in full. This is due to space restrictions that a project of "Good Safety" equals "Good Business" this kind dictates. The reader may contact the company directly for any clarification. Our people care for each other's health and safety." xv The reader should note that the full text of the company's code or policy on this particu- xxii The reader should note that the full text of the company's code or policy on this partic- lar issues has not been stated in full. This is due to space restrictions that a project of ular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. this kind dictates. The reader may contact the company directly for any clarification. xvi Analysis based on: Environment Policy; Health and Safety Policy; Indigenous Peoples xxiiiThe reader should note that the full text of the company's code or policy on this partic- Policy; Greenhouse Gas Challenge website; Australian Minerals Industry Code for ular issues has not been stated in full. This is due to space restrictions that a project of Environmental Management; and Pasminco Limited's website at: this kind dictates. The reader may contact the company directly for any clarification. www.pasminco.com.au. xxiv The reader should note that the full text of the company's code or policy on this partic- xvii The reader should note that the full text of the company's code or policy on this partic- ular issues has not been stated in full. This is due to space restrictions that a project of ular issues has not been stated in full. This is due to space restrictions that a project of this kind dictates. The reader may contact the company directly for any clarification. this kind dictates. The reader may contact the company directly for any clarification. xxv Corporate parent Holcim Group Corporate Social Responsibility principle on xviiiAnalysis based on: Mission Statement; Environmental Policy; and Philex Mining Occupational Health and Safety. Corporation's website at www.philexmining.com.ph. xxvi Corporate parent Holcim Group Corporate Social Responsibility principle on xix Placer Dome Inc.'s Health and Safety policy includes these points: Occupational Health and Safety. "that safety and occupational health considerations are an integral part of all our xxvii Corporate parent Holcim Group Corporate Social Responsibility principle on activities Occupational Health and Safety. that safe work practices and procedures be established for each activity where xxviiiAnalysis based on: Sustainable Development Principles; Environmental Policies; and potential risks occur, and that each employee be required to follow those practices World Coal Institute's website at www.wci-coal.com. and procedures xxix These standards are based in large part on the IFC's Pollution Prevention and that each employee is provided with appropriate information, training and protective Abatement Handbook, which went into official use on July 1, 1998, with particular atten- equipment so that assigned work can be carried out in a safe and productive manner." tion to the industry-specific guidelines for Base Metal and Iron Ore Mining, and Coal xx The Safety charter states the Placer Dome holds the following beliefs: there is no such Mining and Production, as well as the World Bank's Environment, Health and Safety thing as a hazard-free workplace; all hazards can be safeguarded; working safely must Guidelines for Open-Pit Mining and Milling. become the natural way to work; effective leadership is essential to success; achieving E N V I R O N M E N T A L S T A N D A R D S 337 CRS_Annex F 3/3/04 12:17 Page 339 F A N N E X Mining Sector Socio-Economic Issues Companies/Organizations: Silangan Mindanao Exploration Company Teck Cominco Limited Alcan, Inc. Transparency International and Social Accountability Alcoa, Inc. International--Business Principles for Countering Bribery Anglo American p.l.c. Union Cement Corporation Australian Parliament WMC Resources Barrick Gold Corporation World Coal Institute BHP Billiton Limited International Standards CEMEX, S.A. de C.V. European Association of Mining Industries (Euromines) Issues Examined: European Commission Freeport-McMoRan Copper & Gold Inc. Public Participation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340-347 International Council on Mining and Metals (ICMM) Social Impact Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348-355 Lepanto Consolidated Mining Company Indigenous People. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356-363 Mineral Policy Institute (MPI)--Principles for Conduct of Company Operations within the Minerals Industry Land Rights, Resettlement, and Displacement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364-371 Minerals Council of Australia (MCA) Local Economic Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372-379 Mining Association of Canada (MAC) Bribery and Corruption/Facilitation of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380-387 National Mining Association (NMA) Political Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388-395 Newmont Mining Corporation Financial Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388-395 Noranda Inc. Norsk Hydro ASA Competition and Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396-403 Pasminco Limited Mine Closure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404-411 Phelps Dodge Corporation Artisinal and Small-Scale Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412-419 Philex Gold Inc. Voluntary Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412-419 Placer Dome Inc. Third Party Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420-427 Rio Tinto Group 339 CRS_Annex F 3/3/04 12:17 Page 340 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Public Participation "We promote extensive formal dialogue, par- "As a global organization, Alcoa touches the lives "We aim to promote strong relationships ticularly in remote locations. We have 9 for- of thousands of people every day in our communi- with, and enhance the capacities of, the mal stakeholder councils in 6 of 9 countries ties through our employees, customers and suppli- communities of which we are a part. We will with remote operations." ers, in our plants and through our many nonprofit seek regular engagement about issues may The company conducts public opinion polling partners around the world." affect them. Our support for community pro- in 17 countries where it operates. It uses the "Wherever we go, whatever we do, we take our jects will reflect the priorities of local people, information as "valuable supplements to Values with us. We know that our acceptance in sustainability and cost effectiveness." assist with stakeholder consultations [and to] these communities depends on our living up to "We aim for constructive relationships with respond more effectively to public concerns." high standards of corporate citizenship, and on the relevant NGOs. Their input may lead to better "Community stakeholder efforts include rep- products we create adding value." practices and increase our understanding of resentation of native people in our decision- "Our future is linked to the future of our communi- our host communities." making processes with respect to land and ties. And we are driven by the conviction that part The company aims to promote and maintain waterway management, community and qual- of being the best company in the world is being the open and constructive dialogue and good ity of life enhancement." best company in our communities." working relationships with local communities. The company is "designing and implement- ing more complete guidelines for community engagement in response to Business in the Environment FTSE Survey." The company has developed "Community Capacity Development Plans and Community Sustainability Plans in conjunction with regional and local authorities and organizations." The company states that "every project will have 3-year Community Engagement Strategy in place by 2002." The company has Community Engagement Guidelines.i 340 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 341 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must: "Our experience has shown that "At BHP Billiton...community responsibilities The company states that it Provide timely information to its community building is most effective are integral to the way we do business." "has an open-door policy. [It] employees and to members of the when it is tailored to meet local "Wherever we operate we will...[c]ommunicate actively collaborate[s] with the public in any place in which it under- needs and priorities as defined by the with, and engage employees, contractors, busi- local governments and com- takes activities on the actual and communities themselves... Barrick ness partners, suppliers, customers, visitors and munities in which [it] potential environmental impacts of embraces its community-building communities to build relationships based on operate[s]." the activities of the corporation... responsibilities at each new mine it honesty, openness, mutual trust and involve- Undertake environmental impact brings on-line...We not only ment; and share responsibility for meeting the assessments of all new develop- strengthen communities; we become requirements of this Policy." ments, including providing an part of their fabric." The company states that it "will review regularly opportunity for public comment on "We believe that mining develop- and report publicly our progress and ensure [its the assessment." ment, working with local communi- Health, Safety, Environment, and Community] ties and host countries, can create Policy remains relevant to the needs of our lasting, shared benefits while stakeholders." respecting cultural heritage." "To encourage ongoing dialogue about [Health, Safety, Environment, and Community] HSEC matters with our key stakeholders, we will develop Community Relations Plans for all sites...We also aim to listen and learn more about the needs, concerns and aspirations of our stakeholders." "Effective communication and consultation is maintained with stakeholders associated with BHP Billiton activities, and they are encouraged to participate in and commit to HSEC perfor- mance improvement initiatives." "Systems are in place to identify and work with stakeholders and develop strategies to address their concerns and expectations. Consideration is given to the local context and social and cul- tural factors, in order to facilitate understanding and informed discussion." "Systems are in place to work with local com- munities through project development, opera- tional and closure phases, to identify needs and prioritize support for sustainable development initiatives."iv S O C I O - E C O N O M I C I S S U E S 341 CRS_Annex F 3/3/04 12:17 Page 342 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Public Participation The company supports a "People's Development ICMM holds that companies should: (Continued) Foundation [that] manages [a] development fund; "consult with interested and affected par- board consists of tribal, church leaders and represen- ties in the identification, assessment and tatives from local government and Freeport." management of all significant social, health, "FCX and affiliates will: build relationships with people safety, environmental and economic; in the host country and especially with the people impacts associated with our activities; indigenous to the areas of operations or exploration; inform potentially affected parties of sig- work continuously to understand the culture and nificant risks from mining, minerals and social patterns through social, cultural and medical metals operations and of the measures studies; consult with local populations about important that will be taken to manage the potential operational issues that will impact their communities." risks effectively; The company will "[r]ecognize local communities as contribute to the social, economic and stakeholders and engage with them in a process of institutional development of the communi- consultation and communication regarding environ- ties in which we operate; mental management issues and impacts." engage at the earliest practical stage with The company entered into a memorandum of under- likely affected parties to discuss and standing in 2000 "with local community organizations respond to issues and conflicts concern- focusing on socioeconomic rights, human rights, land ing the management of social impacts; and environmental rights." ensure that appropriate systems are in "Since 1996, PT Freeport Indonesia and our joint ven- place for ongoing interaction with ture partner have committed one percent of gross rev- affected parties, making sure that minori- enues for the benefit of the local community through ties and other marginalised groups have the [Freeport Partnership Fund for Community equitable and culturally appropriate Development]. The partnership fund is administered means of engagement; and disbursed by an organization called the Lembaga contribute to community development Pengembangan Masyarakat Amungme Kamoro from project development through closure (LPMAK). LPMAK is managed by a board of commis- in collaboration with host communities sioners consisting of representatives from the local and their representatives; government; Papuan regional leaders, leaders from encourage partnerships with governments the Amungme and Kamoro ethnic linguistic groups and non-governmental organizations to (the groups living closest to the mining operations); ensure that programmes (such as commu- and PT Freeport Indonesia." nity, health, education, local business "In an agreement concluded in 2001, PT Freeport development) are well designed and Indonesia established a trust fund of US $2.5 million ini- effectively delivered; tially and US $500,000 annually thereafter for the enhance social and economic develop- Amungme and Kamoro, enabling them to use some of ment by seeking opportunities to address these funds to purchase shares in Freeport-McMoRan poverty." Copper & Gold Inc., thereby becoming shareholders in the mine. This Voluntary Additional Land Rights Trust Fund fulfills a commitment by PT Freeport Indonesia for voluntary special recognition for the holders of traditional land rights in the mining area for the expanded scope and continuing success of the mining operations."vii 342 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 343 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) The company states that it "[C]ompanies should include community partici- MCA's Code for Environmental Management MAC states that it works to: is committed to "[fostering] pation at all stages of project identification, emphasizes "[s]trengthening our relationship "involve communities of inter- mutually beneficial part- development and monitoring." with the community" and "[e]ngaging the com- est in the design and imple- nerships with host commu- "Companies should establish trust funds to munity about the environmental performance of mentation of our "Towards nities" and "[i]nvolving finance community participation." our operations by: Sustainability Mining" communities in decisions, "Companies should fully disclose all commissioned fostering openness and dialogue with all initiative; which affect them, treating reports by governments, companies and other employees and the community; proactively seek, engage and them as committed part- stakeholders relating to environmental, social, respecting the cultural and heritage values support dialogue regarding our ners, respecting their cul- human, political, civil and social rights and health and facilitating cross-cultural awareness and operations; tures, customs and values and safety issues." understanding; be responsive to community and taking into account "Companies should include NGOs/communities consulting with the community on the environ- priorities, needs and interests their needs, concerns and and/or their nominated representatives, in the com- mental consequences of our activities; through all stages of mining aspirations." munity's right to know and participation in the anticipating and responding to community exploration, development, development of environmental impact statements concerns, aspirations and values regarding operations and closure; and social impact statements. (including guidance our activities." encourage dialogue on envi- on culturally appropriate discussion, independent The Australian Minerals Industry Community ronmental issues with employ- arbitration)." Relations Statement promotes the recognition ees and the public and be "Companies should accept annual general that "the Australian Minerals Industry must oper- responsive to concerns." meetings as suitable forums for discussions and ate now and into the future in a manner that is questioning on key matters of public interest attuned to community values and expectations. and should extend a broad invitation to affected We commit to carrying out our operations and communities and community groups to send activities in ways that embody the following values: representatives." acknowledge and respect the values , cul- tures, customs, and beliefs of affected com- munities; acknowledge and respect the special connec- tion to land and waters held by indigenous Australians; acknowledge affected communities rights and interests in relation to industry operation or activities impacting on their lives; respect the communities desire for early, continuing, and informative engagement; accept that engagement begins with listening and includes understanding the community and responding appropriately; engage with affected communities in a spirit of honesty, good faith, cooperation and respect; seek open, accountable, mutually beneficial and enduring relationships with affected com- munities." S O C I O - E C O N O M I C I S S U E S 343 CRS_Annex F 3/3/04 12:17 Page 344 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Public Participation NMA states that its "After the creation of the "We seek out and listen to the ideas and con- "We have developed guidelines for (Continued) business practices new Newmont in February cerns of our stakeholders." managing social issues in local include "[b]eing a pro- 2002, the Company is work- The company states that it will: communities affected by the com- gressive and construc- ing towards a more uni- get involved in and work with the community to pany's industrial activities, and we tive partner to advance formed approach to solve community problems; foster openness and transparency. the economic, educa- community relations which involve local communities in decision making Hydro's ambition of being a tional and social infra- will enable greater mea- for issues that affect them. responsible player in society is structures of the surement of performance also reflected in our engagement "Because Noranda has obligations to its commu- communities in which in the future." with NGOs. Our dialog with NGOs nities, we strive to maintain open communication we operate" and "Community involvement is based on openness, and we and dialogue. This is an important aspect of doing "[r]especting the cul- means working in conjunc- enter into co-operation and business, and we are continually working to build tures, customs and val- tion with communities to alliances where we perceive alliances with communities in which we operate. ues of people wherever create acceptable mutual benefits to the community, Operations throughout Noranda ensure that local we operate, being processes for managing NGOs, and the company." risks are communicated, often in collaboration responsive to--and conflicts and making deci- "Co-operation and dialogue with community organizations." respecting--community sions... Newmont aims to with non-governmental organiza- The company states that its objectives include: needs and priorities and engage, as much as possi- tions and stakeholders, both locally encouraging and partic- ble, with its local communi- "[fostering] constructive dialogue with inter- and globally to develop mutual ipating in an open and ties to ensure interactions ested parties concerning the conduct of our understanding." on-going dialogue with are relevant, conflicts are activities; constituencies." resolved quickly and to the [achieving] open dialogue and transparency at mutual benefit of both par- the community level; ties and in such a way that [establishing] community liaison committees to stakeholders feel positive discuss environmental, social and economic about their involvement issues." with the Company." Before embarking on a project, Noranda takes "Essentially, all Newmont into consideration: operations conduct their "the environmental, economic, social, and cul- business to the same high tural impacts of the business; standards and all sites a stakeholder's proximity to the proposed pro- operate under a specific ject site; community relations / com- any national or international interests and/or munity development policy issues at stake; or statement of commit- any landmarks of public interest, such as his- ment. Work is now pro- torical sites or environmentally sensitive gressing to tie the most areas." important elements of each individual policy or state- ment into an overarching strategy for the entire com- pany." 344 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 345 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company states that it has The company states that it works to "Public Responsibility: Communication with stakehold- "[c]ommittees with majority "[i]nform local communities of min- ers and working towards consensus based on honest community/aboriginal repre- ing plans and programs through discussion and a mutual understanding of concerns sentation established to man- continuous dialogue to promote and needs. age compensation payments; awareness of safety and environ- Our sustainability policy ensures we will: Provide for monitor environmental compli- mental policies." the effective involvement of communities in decisions ance; [facilitate] education, which affect them, to treat them as equals, respect employment and training pro- their cultures, customs and values, and take into grams; [and promote] local account their needs, concerns and aspirations in mak- business development." ing decisions." S O C I O - E C O N O M I C I S S U E S 345 CRS_Annex F 3/3/04 12:17 Page 346 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Public Participation "We apply common values and standards wher- The company "Teck Cominco will...foster (Continued) ever the Group operates, always seeking to states that it open and honest dialogue with respect the different laws, cultures, traditions, cus- works to: all of its stakeholders, respect toms and employment practices in place. .. We "promote and the rights, interests and aspira- strive to understand and interact constructively maintain harmo- tions of local indigenous peo- with local communities, governments, and others nious under- ple and seek out and listen to in the public and private sectors..." standing with those in the community who "We set out to build enduring relationships with the partner are affected by its operations." our neighbours that are characterised by mutual communities respect, active partnership, and long term commit- and other stake- ment. Good management of community relation- holders in the ships is as necessary to our business success as management of the management of our operations. Good perfor- community mance requires all of us to accept responsibility for based community relationships. We detail local arrange- resources ments in rolling five-year communities plans which towards self- all operations submit and update annually." reliance; "We access and use land, rehabilitate unavoidable inform partner impacts and work with local communities to help communities with their needs in the most efficient and effective through the manner we can. In all cases, this involves ongoing local govern- consultation with local people, public authorities ment units and and others affected. We accept that this may some- various sectors times result in our not exploring land or developing concerning operations, even if legally permitted to do so." company's "Our Communities policy is based on mutual plans and pro- respect and hence respect for the rights of all peo- grams." ple, including indigenous groups, living near opera- tions should form a central part of our work on community relations. In particular, we should: (1.1) create awareness among employees of the per- spectives of local people; (1.2) consult regularly with local communities in a sensitive and open process; (1.3) strive to achieve the free and informed consent of indigenous people to proceed with developments." 346 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 347 World Coal Union Cement Corporation WMC Resources Institute International Standards "We assess local needs, promote The company's community policy states that "[a]s International Finance Corporation (IFC) Policy on community involvement and part- an integral part of the community, we recognise Environmental Assessment, OP 4.01: "...project sponsor ner with local stakeholders and act on our responsibilities. We work with com- consults project-affected groups and local NGOs about around our operations to improve munities to develop and nurture positive relation- the project's environmental aspects and takes their views educational, cultural and social ships built on mutual understanding and respect. into account...sponsor provides relevant material in a development."xvi Building these long-term partnerships in essential timely manner prior to consultation and in a form and lan- "We encourage and support our for our business success. To achieve this we: guage that are understandable and accessible to the employees' engagement in volun- value and respect human rights; groups being consulted." teering and local community eengage by listening, considering and responding; "Policy on Natural Habitats," OP 4.04, also emphasizes work."xvii communicate in an open and transparent manner; public participation. "We maintain a proactive part- respect cultural diversity and protect cultural Community participation also emphasized in World Bank nership with our communities." heritage; Operational Directive 4.30 on Involuntary Resettlement "We recognize our responsibility require our behaviour to be consistent with this (June 1990). to the communities in which we policy." operate. We make positive con- "As we invest in exploration, development, pro- tributions aimed at improving the duction and closure we, in consultation with host quality of life of the people and communities, government authorities and other communities around us. Our organisations: involvement in a wide range of initiatives helps us guide our encourage and support community development; progress." encourage and support initiatives to enhance "Union Cement Corporation social benefits such as environment, health and believes that earning and keeping education; the trust and respect of our com- identify and facilitate opportunities for employ- munities is important for our ment, training and business relationships directly license to operate and for the long and through our contractors and suppliers." term success of the business." "We monitor, continuously improve and publicly "Union is an active and responsi- report our activities and our performance." ble member of the communities where it operates. Every plant has full time staff working with the communities in planning, implementing and maintaining socio-economic programs towards building sustainable and empowered communities." S O C I O - E C O N O M I C I S S U E S 347 CRS_Annex F 3/3/04 12:17 Page 348 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Social Impact "Project Feasibility studies must include: potential "Anglo American policy requires that an Assessment limitations to rehabilitation at mine closure; physi- environmental and social assessment is cal, chemical, biological and cost limitations; com- completed on all projects and expansions to prehensive surveys on landform, geology, soil existing operations prior to physical work types, climatic conditions, hydrology, flora and commencing on site" fauna (biodiversity), heritage and cultural values, "The environmental impact assessment ...is and land use; potential ecological impacts; poten- based on the significance, duration and tial impacts on nearby residents and land owners." spatial consequences of an impact as well as the likelihood of such an impact occur- ring. For those impacts that are assessed as medium or high, mitigation recommenda- tions are made. The entire assessment process is both trackable and auditable. Usually, either on a stand-alone basis or as part of the environmental impact assess- ment, a social impact assessment is also undertaken. This identifies the towns and communities that will be affected by an operation. The social dynamics of each affected community are then determined, including the labor, services and infrastruc- ture that may be available to the proposed operation. The social effects on each of the surrounding communities are then assessed, and recommendations are made for the formulation of Community Capacity Development Plans and Community Sustainability Plans for each of them. The latter plans are developed in conjunction with regional and local authorities and other relevant organizations, usually in the form of regional development plans." 348 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 349 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must: "Environmental assessment associ- [u]ndertake environmental impact ated with each new operation assessments of all new develop- includes an assessment of economic ments, including providing an oppor- and social effects. This information tunity for public comment on the provides a basis for refining project assessment." development plans and activities to avoid or reduce the negative effects associated with project develop- ment, operations, and closure." S O C I O - E C O N O M I C I S S U E S 349 CRS_Annex F 3/3/04 12:17 Page 350 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Social Impact "European Union (EU) ICMM holds that companies should: Assessment Council Directive "integrate sustainable development con- (Continued) 85/337/EEC (of siderations within the corporate decision- 27.6.1985) requires making process; Environmental Impact implement risk management strategies Assessment (EIA) for based on valid data and sound science; open-pit mining and consult with interested and affected par- quarries." ties in the identification, assessment and management of all significant social, health, safety, environmental and economic impacts associated with our activities; ensure regular review and updating of risk management systems; assess the positive and negative, the direct and indirect, and the cumulative environmental impacts of new projects - from exploration through closure." 350 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 351 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) The company states that it "Companies should carry out environmental and MCA's Code for Environmental Management MAC states that it works to: is committed to "[a]ssess- social impact assessment for both exploration emphasizes "[a]ssessing environmental and "support the capability of com- ing and identifying all and mining activities. The company using inde- related community effects before and during munities to participate in issues of environmental pendent consultants agreed to by both the com- exploration and project development" and opportunities provided by new concerns from exploration pany and the community, or the representative "[e]valuating risk and alternative exploration mining projects and existing through to mine closure." organisation of the community's choice should and mining project concepts, taking into operations;" pay for studies. All EIAs should include the option account community views and subsequent "identify, assess and manage for mining not to proceed at all if environmental land use options." environmental risks." and social impacts are found to be sufficiently severe." "Companies should include in their assessment of investment options the social usefulness of minerals to be extracted." S O C I O - E C O N O M I C I S S U E S 351 CRS_Annex F 3/3/04 12:17 Page 352 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Social Impact NMA states that its "The Consultation Process: Before embarking on "Social Impact Assessments Assessment business practices a project, Noranda takes into consideration: (SIAs) are performed in local com- (Continued) include "[r]ecognizing the environmental, economic, social, and cul- munities where Hydro operates. and being responsive to tural impacts of the business; Assessment are performed for possible environmental a stakeholder's proximity to the proposed proj- each project in Hydro Oil & Energy impacts of exploration ect site; and for major projects in Hydro activities" and "[d]evel- any national or international interests and/or Aluminium." oping approaches to issues at stake; mine planning and any landmarks of public interest, such as his- development that are torical sites or environmentally sensitive responsive to possible areas." environmental impacts through every stage of the mine cycle including closure and post-clo- sure activities." 352 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 353 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company states that it works to "Our sustainability policy ensures we will: regularly "[i]ncorporate environmental con- assess environmental conditions through all stages siderations in the project planning from exploration through mine closure, identifying all phase and in each activity, be it issues of environmental concern and establishing exploration, development, construc- objectives and strategies for their management." tion, extraction or processing." S O C I O - E C O N O M I C I S S U E S 353 CRS_Annex F 3/3/04 12:17 Page 354 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Social Impact "When we consider new projects in regions "The enterprise should establish Assessment where allegations of [human rights] abuses are feedback mechanisms and other (Continued) rife, we need to undertake an analysis of the internal processes supporting the human rights situation." continuous improvement of [its "The fundamental principle is to thoroughly under- Programme for Countering stand local communities. Operations need to know Bribery]." the make up of a community, who its members are, "The enterprise should subject the the group demographics, the quality of life and internal control systems, in partic- what the majority want for the future. [A] baseline ular the accounting and record study provides information on incomes, literacy, keeping practices, to regular health, land tenure, population, occupational skills audits to provide assurance that and, where appropriate, traditional beliefs. In they are effective in countering some countries, it may be necessary to include bribery." information about patterns of leadership and deci- "Senior management of the enter- sion making to help develop a better understand- prise should monitor the ing of community dynamics. In other countries, Programme and periodically information on volunteer organisations and pres- review the Programme's suitability, sure groups may be necessary." adequacy and effectiveness and "In 2002 we began a series of pilot studies com- implement improvements as appro- menced to achieve a deeper level of understand- priate. They should periodically ing of the linkages between mining activities and report to the Audit Committee or the economies in which they take place. The work the Board the results of the identifies six critical areas on which attention Programme review." should be focused, in conjunction with local "The Audit Committee or the Board actors, to advance local economic development. should make an independent These are: Poverty alleviation and income distribu- assessment of the adequacy of tion; Capacity building and local economic institu- the Programme and disclose its tions; The need for a broader local economic findings in the Annual Report to strategy; The supply chain and the expansion of shareholders." backward linkages; Business generation and small and medium enterprise support; and the local financial infrastructure." 354 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 355 World Coal Union Cement Corporation WMC Resources Institute International Standards The company's environmental policy states that it IFC Policy on Environmental Assessment, OP 4.01: will "[i]ntegrate environmental factors into plan- Requires environmental assessments (EA) of projects ning and operational decisions and processes" proposed for IFC financing to help ensure that they are and "[a]ssess the potential environmental effects environmentally sound and sustainable, and thus to of our activities, and regularly monitor and audit improve decision-making... EA takes into account the nat- our environmental performance." ural environment (air, water, land); human health and "It is important that we assess and control envi- safety; social aspects (involuntary resettlement, indige- ronmental risks associated with the development nous peoples, cultural property); and transboundary and and activities of all operations. The challenges for global environmental aspects. the environmental assessment are: to ensure that we give adequate consideration to environmental and social aspects in deter- mining the viability and acceptability of alterna- tive project scenarios; to ensure that we incorporate adequate envi- ronmental mitigation or protection measures into project design, construction, implementa- tion, and decommissioning plans..." "In WMC, we will: Undertake an environmental assessment and internal approval process as part of the plan- ning phase for any: - new project - extension - upgrade - process change - expansion to an existing project Incorporate into the project design and con- struction, measures to: - manage, minimise and monitor environmental impacts; and - maximise efficient use of resources. - Ensure that we consider viable alternatives for all major developments. - Consult with interested parties in the environ- mental assessment process." S O C I O - E C O N O M I C I S S U E S 355 CRS_Annex F 3/3/04 12:17 Page 356 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Indigenous People "Community stakeholder efforts include rep- "Within the framework of our Values, we respect "We respect human dignity and the rights of resentation of native people in our decision- the cultures, customs and values of the people in individuals and of the communities associ- making processes with respect to land and communities where we operate and take into ated with our operations...we recognize the waterway management, community and account their needs, concerns and aspirations." sensitivities involved in addressing issues quality of life enhancement." "Where applicable, special needs of indigenous which relate to the cultural heritage of people and their communities must also be incor- indigenous communities. We will seek to porated into mining rehabilitation strategy." ensure that such matters are handled in a spirit of respect, trust and dialogue." The company aims to "[r]espect people's culture and heritage" and to demonstrate "[r]espect for and sensitivity to the needs and rights of indigenous or historically dis- advantaged people." 356 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 357 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Barrick seeks positive working rela- "Wherever we operate we will...respect the tionships with indigenous peoples at traditional rights of indigenous peoples...care its operations and has specific poli- for the environment and value cultural heritage." cies to promote the hiring of indige- "We respect the traditional rights of indigenous nous peoples." peoples and aim to work cooperatively with The company places an "[e]mphasis them to ensure that our presence provides last- on protecting cultural sites or arti- ing benefits and causes as little disruption as facts." possible to their communities. We also acknowl- edge that indigenous peoples have the right to keep their culture, identity, traditions and customs." "Activities and operations are conducted in an ethical manner that supports fundamental human rights, respects traditional rights of indigenous peoples and values their cultural heritage." "Local and indigenous communities, and their traditional cultural heritage values potentially affected by BHP Billiton operations are identi- fied, and strategies are developed to address their concerns and aspirations." S O C I O - E C O N O M I C I S S U E S 357 CRS_Annex F 3/3/04 12:17 Page 358 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Indigenous People "Most important is our commitment to ICMM holds that companies should: (Continued) extend respect to indigenous (Papuans) "respect the culture and heritage of local and their culture and consult with them on communities, including indigenous peoples; issues impacting their communities." ensure that appropriate systems are in The company states that it will "employ place for ongoing interaction with affected people who are indigenous to the opera- parties, making sure that minorities and tional or exploration site wherever possible." other marginalised groups have equitable The company states that it "[acknowl- and culturally appropriate means of edges] that certain areas may have particu- engagement." lar ecological or cultural values as well as development potential and, in such instances, consider these values along with the economic, social, and other benefits resulting from development." 358 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 359 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) The company states that it MPI holds that "[m]ining companies should "Australia's indigenous peoples are entitled to MAC states that it "[r]espect[s] is committed to "[i]nvolving develop and publish a code of practice for nego- opportunities to participate in mineral develop- the cultures, customs and values communities in decisions, tiations over exploration and mining with commu- ment projects including by direct employment of people with whom our opera- which affect them, treating nities and NGOs." and related economic or business opportunities." tions interact." them as committed part- "Companies must recognise that every commu- "The minerals industry will promote the ners, respecting their cul- nity has a right to negotiate over the use of its removal of barriers, real and artificial, to edu- tures, customs and values land and impose a veto on development that it cation, training, workplace and business oppor- and taking into account does not support." tunities for affected indigenous communities." their needs, concerns and Citations to Articles 17 and 27 of the UDHR, as "The minerals industry will seek to develop aspirations." well as the right to self-determination guaranteed relationships with indigenous peoples in which in the Covenant on Civil and Political Rights. there is a better awareness of respective issues, needs and concerns and a higher level of mutual understanding." "These relationships may be formalized as agreements between mineral companies." S O C I O - E C O N O M I C I S S U E S 359 CRS_Annex F 3/3/04 12:17 Page 360 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Indigenous People NMA states that its busi- "Building partnerships with indigenous peoples "We will pay special attention to (Continued) ness practices include is part of doing business in Noranda's world. the rights, requirements and cul- "[r]especting the cul- Although we still have much to learn about work- tural integrity of indigenous people tures, customs and val- ing with different cultures, we are learning from affected by our operations." ues of people wherever past mistakes and from our current positive "We recognize the intrinsic value we operate, being experiences." of the different cultures in which we responsive to--and "Noranda draws a workforce from every country operate, and will show respect for respecting--community in which it operates. Our employees have diverse these cultures in all our business needs and priorities and national and ethnic backgrounds, and we are practices." encouraging and partici- committed to being an employer of choice. pating in an open and Noranda makes it a priority to hire from local on-going dialogue with communities to the fullest possible extent and to constituencies." provide access to employment opportunities for aboriginal persons, individuals with disabilities and other minorities." 360 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 361 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. "The company is committed to "Placer Dome recognizes the importance of the land achieving broad-based support and traditional territories to Aboriginal communities. for exploration and mining by We welcome local Aboriginal community consultation, working cooperatively with input and involvement in areas where we have mutual local communities in develop- interests. We recognize that mineral development ing its operations. To guide its must contribute to the benefit of all parties involved." relations with indigenous com- The company states that it is committed to: munities in Australia and else- "recognizing in all phases of Company activities the where, Pasminco has unique historical, linguistic and cultural status of developed an Indigenous Aboriginal peoples and their strong attachment to Peoples Policy along with man- and respect for the land, the environment and tradi- agement systems for its imple- tional lifestyles; mentation." consulting with local communities regarding pro- We will:xi grams proposed on mineral claims covering lands of (1) Foster an ethos of racial mutual interest; equality throughout working with local communities to develop plans Pasminco and amongst its that will incorporate traditional knowledge and that contractors. will protect spiritual sites, traditional pursuits and (2) Develop mutual understand- the environment during exploration, mining and ing and respect between reclamation activities; Pasminco personnel and working with local communities and other parties, indigenous communities including government, to support social develop- and organisationsxii ment in these communities; (3) Adopt a proactive approach working with interested local Aboriginal peoples and to indigenous relations by educational institutions to support their efforts to consultation with groups develop knowledge and upgrade skills that will pre- that may be affected.xiii pare them for employment in the Company's projects; ensuring participation of interested Aboriginal peo- ple by providing training and employment opportuni- ties at all stages of mineral property activity and by creating a working environment that encourages the participation of qualified Aboriginal people at all lev- els of the Company; working with local Aboriginal communities in the development of business opportunities created as a result of the Company's local activity; promoting positive relationships with Aboriginal communities through consultation and through pro- viding cross-cultural training programs for Aboriginal and non-Aboriginal employees." S O C I O - E C O N O M I C I S S U E S 361 CRS_Annex F 3/3/04 12:17 Page 362 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Indigenous People The company states that it supports the principles of The company states "Teck Cominco (Continued) International Covenant on Civil and Political rights Article that it works to will...foster open and 27, UDHR Article 17.2, and International Labour "[p]erform aggressive honest dialogue with Organisation (ILO) Convention 169. but prudent explo- all of its stakeholders, With respect to indigenous rights, the company states that ration, extraction, and respect the rights, "[e]mployees may have beliefs associated with birth, death utilization of the avail- interests and aspira- or marriage that require absence or unusual working hours. able mineral resources tions of local indige- There may be cultural property--or sites of religious signifi- with due considera- nous people and seek cance to local people--that need to be surveyed or to have tions and respect to the out and listen to special arrangements for protection. In many cases, indige- culture and heritage of those in the commu- nous knowledge is not something to be shared but some- the local communities." nity who are affected thing that needs to be recorded and preserved in a private by its operations." manner. Special arrangements may need to be made to "Teck Cominco has accommodate traditional systems of land tenure. We pledged to respect should strive to achieve the free and informed consent of the rights, interests indigenous peoples to proceed with developments." and aspirations of "Group operations recognize that, in some parts of the indigenous people." world, there exist in addition to land rights enshrined in national law other claims to land such as those based on ancestral and indigenous title. In such cases operations seek to establish the fullest possible understanding of the issues involve including the ways in which the wishes of those communities claiming such rights are accommodated... The group fully accepts that the out- come of this process of consultation with local people, public authorities, and other interested parties may result in authorization not being given to explore or to mine, or that operations themselves will decide not to proceed in any given case." "In many regions in the world, indigenous people have owned and occupied lands for many generations, fre- quently for longer periods than the prevailing sovereign government. Under these circumstances it is appropri- ate, and indeed frequently required under statute, that Rio Tinto negotiates a mining access agreement directly with the indigenous landowners." These agreements are rights based in that they recog- nise the rights and interests of indigenous landowners and seek an equitable distribution of benefits between Rio Tinto, indigenous peoples and government. "The agreements set out to produce constructive, mutu- ally beneficial relationships between Rio Tinto and host indigenous communities." 362 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 363 Union World Coal Cement Corporation WMC Resources Institute International Standards "WMC is committed to developing relationships of International Covenant on Civil and Political Rights, Art. 27: ethnic minorities mutual understanding and respect with the indige- "shall not be denied the right, in community with the other members of their nous peoples of the areas in which we operate or group, to enjoy their own culture." propose to operate." ILO Convention 169 (Indigenous and Tribal Peoples) in Independent Countries. To fulfil this commitment, the company will: United Nations (UN) Draft Declaration on the Rights of Indigenous Peoples "establish and maintain effective, positive and (reflects the input of indigenous people as well as national governments). frequent communication with indigenous groups; World Bank Operational Directive 4.20 on Indigenous Peoples (Sept 1991): recognise the desire of indigenous peoples to fulfil Ensure that indigenous people benefit from development projects, and their responsibilities within their traditional culture; avoid or mitigate potentially adverse effects on indigenous people seek to identify all indigenous interests in the area caused by Bank-assisted activities; within which the company is operating or intends Ensure that the development process fosters full respect for their dignity, to operate, define the basis for those interests human rights, and cultural uniqueness. More specifically, the objective at whether derived from cultural traditions, historical the center of this directive is to ensure that indigenous peoples do not association, occupation, social or economic need, suffer adverse effects during the development process, particularly from and deal with those interests in accordance with Bank-financed projects, and that they receive culturally compatible the relevant government policy; social and economic benefits; recognise and observe all state, provincial, and Strategy for addressing the issues pertaining to indigenous peoples must be federal laws relevant to indigenous and cultural based on the informed participation of the indigenous people themselves. matters; World Bank Operational Directive 4.30 on Involuntary Resettlement (June 1990). formulate and implement for appropriate company World Bank/IFC: Cultural Property (OPN 11.03, Sept 1986): Assist in preser- personnel, an indigenous awareness program, vation of cultural properties and avoid their elimination. The Bank normally pertinent to the local situation, which will engen- declines to finance projects that will significantly damage non-replicable der the appropriate understanding, sensitivity and cultural property, and will assist only those projects that are sited or desig- respect towards the local indigenous peoples." nated so as to prevent such damage. "Wherever reasonable and appropriate, provide local The Bank will assist in the protection and enhancement of cultural proper- indigenous groups with the opportunity to participate ties encountered in Bank-financed projects, rather than leaving that protec- directly or indirectly in employment opportunities." tion to chance. (Policy Note 11.03, Cultural Property). "Taking into account local conditions, provide the UN Norms: Transnational corporations and other business enterprises shall opportunity for qualified local indigenous busi- respect the rights of local communities affected by their activities and the nesses to tender for the supply of goods and ser- rights of indigenous peoples and communities consistent with international vices necessary for the company's local activities." human rights standards such as ILO Convention 169 (Indigenous and Tribal In its 2002 Social Responsibility report, the company Peoples). They shall particularly respect the rights of indigenous peoples set the following performance objectives: and similar communities to own, occupy, develop, control, protect, and use "develop and implement baseline review of host their lands, other natural resources, and cultural and intellectual property. communities and operations; Indigenous peoples and communities shall not be deprived of their own develop a community measurement process; means of subsistence, nor shall they be removed from lands which they implement indigenous pre-employment training occupy in a manner inconsistent with ILO Convention 169. Further, they across operations; shall avoid endangering the health, environment, culture, and institutions of implement trainee/apprenticeship process across indigenous peoples and communities in the context of projects, including operations; road building in or near indigenous peoples and communities. Transnational implement local community/indigenous people corporations and other business enterprises shall use particular care in sit- contract conditions across operations." uations in which indigenous lands, resources, or rights thereto have not been adequately demarcated or defined. S O C I O - E C O N O M I C I S S U E S 363 CRS_Annex F 3/3/04 12:17 Page 364 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Land Rights, "Community stakeholder efforts include rep- "Potential impacts on nearby residents and "The scope of traditional land rights has Resettlement, and resentation of native people in our decision- landowners must be fully considered in the plan- been clarified and strengthened in a number Displacement making processes with respect to land and ning and operation of the mine, including mine of countries in recent years. Because the waterway management, community and rehabilitation." context of these rights varies so widely quality of life enhancement." "Where resettlement of people is involved, the between countries, we believe that our "Prior to resettling communities, Alcan rehabilitated areas should match previously agreed approach is best governed by national legis- obtains community consent through formal conditions. Resettlement should ensure that lation. However, we also seek to observe the stakeholder consultations. Terms for resettle- landowners are adequately compensated in kind leading sources of international best prac- ment are negotiated with the concerned and financially, as appropriate. The socio-eco- tice and wherever we develop operations, groups. These include compensation for the nomic impacts on the community in the mined we aim to do so on the basis of the informed dislocation and resettlement in modern region and the resettled community should also be consent of local communities." accommodations." taken into consideration." "Resettlement is sometimes necessary in order to access mineral reserves or to ensure, inter alia, that communities are not impaired by dust or disruption caused by heavy trucks or blasting. We seek, wherever possible, to proceed through negotiation and start planning well in advance through con- sultation with the families affected. Often, those affected will prefer resettlement of the whole community. On other occasions, they may opt for individual compensation. In plan- ning a resettlement, the wishes of the com- munity are crucial. Also important are issues like the availability of land and ensuring that community ties and traditional income sources are not disrupted. We seek to rec- ognize the dislocation caused to the lives of local people and to ensure that the quality of life of those resettled is enhanced. If, as a last resort, resettlement is needed, this is done in accordance with national legal processes and with regard to international best practice." 364 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 365 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Wherever we operate we will...respect the tra- ditional rights of indigenous peoples... care for the environment and value cultural heritage." "We have committed to implement the World Bank Guidelines on Involuntary Resettlement." S O C I O - E C O N O M I C I S S U E S 365 CRS_Annex F 3/3/04 12:17 Page 366 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Land Rights, "Freeport acknowledges the special rela- ICMM holds that companies should: Resettlement, and tionship between the Papuan people and "Minimise involuntary resettlement, and Displacement their traditional lands, and provides com- compensate fairly for adverse effects on (Continued) pensation for the use of land. "Recognition the community where they cannot be Agreements" with indigenous peoples, avoided." which include compensation, rehabilita- tion, reclamation, infrastructure, develop- ment plans." 366 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 367 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) "[C]ompanies must recognise indigenous people and their "Access for land for exploration and devel- traditional or customary ownership of land especially opment is an essential requirement for the where a host government does not recognise the legal minerals industry." status of customary land." "It is in the interests of all Australians that Companies should: seek to grant customary ownership the policy and decision making process the same status as legal ownership; should not view a provides for fair, effective and equitable lack of title as a bar to compensation; should negotiate access and use of land and resources." with the entire community when community ownership is "Land use and land access decisions that claimed; and should provide compensation for user rights. are timely and provide certainty and clarify "Mining companies should develop and publish a code of are in the interests of all Australians." practice for negotiations over exploration and mining with "Australia's indigenous peoples have communities and NGOs." native title recognised under the common "Companies must recognize that every community has a law of Australia. Native title exists in accor- right to negotiate over the use of its land and impose a dance with the laws and customs of indige- veto on development that it does not support." nous people subject to certain conditions." "Companies must ensure that all landowners are fully "The Native Title Act 1993 and other involved in any negotiations concerning any mineral oper- Commonwealth and State/Territory ations which affects or has the potential to affect them." Statutes also provide mechanisms for the "All agreements with indigenous people or other recognition and exercise of native title landowners should be based on the disjunctive agree- rights." ment process whereby a separate agreement is required "Where native title rights are unresolved, at both mining and exploration stages." unrecognized or pending under the "Companies should not forcibly remove or be a party to oth- Statutes, the minerals industry will consult ers who want to remove indigenous people from their land with indigenous people who have main- or territories. No relocation shall take place without free tained a traditional use or occupancy of, and informed consent of the indigenous peoples concerned and affinity for the land on which mineral and after agreement on just and fair compensation." development is desired." "Companies should not operate any project in areas where any forced removals from land have occurred." "Companies should ensure that if the development of a mine means that people have to be moved off the mining site, then the resettlement and rehabilitation of those peo- ple, should be agreed to by the people of the affected community. No affected person, group or community should have their standard of living, economic, culture and social cohesion diminished as a result." "Companies should ensure that all royalties and compen- sation agreements are based on international best prac- tice in terms of terms and conditions being the highest achievable by landowners for equity, participation, employment, royalties and compensation."viii S O C I O - E C O N O M I C I S S U E S 367 CRS_Annex F 3/3/04 12:17 Page 368 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Land Rights, Resettlement, and Displacement (Continued) 368 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 369 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. "Land currently owned by Pasminco [is] shifted to abo- riginal communities under [the] Gulf Communities Agreement." S O C I O - E C O N O M I C I S S U E S 369 CRS_Annex F 3/3/04 12:17 Page 370 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Land Rights, The company states that it recognizes that Resettlement, and "[c]laims to land can be based on traditional tenure Displacement as well as statutory law" and that "[l]ocal and (Continued) national land use policies may also differ." "Our objective is to bridge significant gaps between legislated and customary arrangements through the fullest possible understanding of the issues involved. Where property is affected, its value is assessed and appropriate compensation mutually agreed." "We are particularly rigorous in assessing the effects of our activities in advance in areas of high conservation or heritage value. We work with oth- ers to design appropriate mitigation and manage- ment methods and then monitor them to ensure best practice is followed." "Our land management objectives include the desire to manage land in consultation with local communities from exploration through planning, construction, operation and closure by: ensuring minimum impact on peoples' access to land; maintaining cultural connections and the social function of land; respecting land tenure." 370 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 371 Union World Coal Cement Corporation WMC Resources Institute International Standards " [A] [p]rogram in World Bank Operational Directive 4.30 on Involuntary Resettlement (June 1990): Land, housing, infrastruc- resettlement and ture and other compensation should be provided to the adversely affected population, indigenous groups, displacement is ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources incorporated in the taken for the project. The absence of legal title to land by such groups should not be a bar to compensation. company's Social UN Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard Development and to Human Rights (Norms): Transnational corporations and other business enterprises shall respect the rights Management of local communities affected by their activities and the rights of indigenous peoples and communities con- Program." sistent with international human rights standards such as ILO Convention 169 (Indigenous and Tribal Peoples). They shall particularly respect the rights of indigenous peoples and similar communities to own, occupy, develop, control, protect, and use their lands, other natural resources, and cultural and intellectual property. Indigenous peoples and communities shall not be deprived of their own means of subsistence, nor shall they be removed from lands which they occupy in a manner inconsistent with ILO Convention 169. Further, they shall avoid endangering the health, environment, culture, and institutions of indigenous peoples and communities in the context of projects, including road building in or near indigenous peoples and com- munities. Transnational corporations and other business enterprises shall use particular care in situations in which indigenous lands, resources, or rights thereto have not been adequately demarcated or defined. World Bank Operational Directive 4.30 on Involuntary Resettlement (June 1990): (Applicable to both physi- cal and economic displacement): "Ensure that the population displaced by a project receives benefits from it. Involuntary resettlement is an integral part of project design and should be dealt with from the earliest stages of project preparation, taking into account the following: involuntary settlement should be avoided or minimized where feasible, exploring all viable alternative project designs; where involuntary settlement is unavoidable, resettlement plans should be developed... conceived and executed as development programs, with resettlers provided sufficient investment resources and oppor- tunities to share in project benefits; displaced persons should be compensated for their losses at full replacement cost prior to the actual move; assisted with the move and supported during the transition period in the resettlement site; and assisted in their efforts to improve their former living standards, income earning capacity, and produc- tion levels, or at least to restore them; community participation in planning and implementing resettlement should be encouraged; resettlers should be integrated socially and economically into host communities." S O C I O - E C O N O M I C I S S U E S 371 CRS_Annex F 3/3/04 12:17 Page 372 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Local Economic "Our objective is to balance the interests of Alcan and its "We will increasingly seek to assess the Development shareholders with the legitimate interests of employees, cus- contribution our operations make to local tomers and suppliers, as well as governments and the public social and economic development and to at large. We take into account the differing social, economic report on it." and environmental aspirations of the communities in which "We seek to make a contribution to the eco- we are active." nomic, social and educational well-being of "Our company-wide community investment and sponsorship these communities, including through local objective is to participate in the communities in which we business development and providing oppor- operate through financial, charitable and cooperative efforts." tunities for workers from disadvantaged "[Our] facilities employ a significant percentage of the immedi- backgrounds." ate community and purchase extensively from local suppliers." The company aims to "[p]romote good rela- tionships with and enhance the capabilities of, the local communities of which we are a part." The company produces an annual "Black Empowerment Report" on Anglo's efforts to empower historically disadvantaged South Africans. The company has developed "Community Capacity Development Plans and Community Sustainability Plans in conjunction with regional and local authorities and organiza- tions" as part of as assessment process. 372 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 373 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "New mine developments are often "Wherever we operate we will...seek opportunities to share our The company states that it in remote, undeveloped regions, success by: recently "donated 20 new where basic infrastructure is working with communities to contribute to social infrastructure PCs to public schools" required. In these areas in particu- needs through the development and use of appropriate skills and and "participated in road- lar, Barrick's infrastructure building technologies; concreting projects." efforts provide both the mine proj- developing partnerships that focus on creating sustainable ect and the communities in the avenues for everyone." region with power lines, water, "Communities where we operate should benefit from our operations roads, and housing." both in the short and long term. We aim to work with governments, "Our policy is to donate 1% of communities and other organizations to ensure resources are annual pretax income to community directed toward sustainable benefits. We are committed to ensuring causes. Our focus is on long-term that the communities in which we work share our success. In addi- benefits for the community--not tion to the traditional benefits that flow from our activities such as just Company employees." royalties, taxes and business and employment opportunities, we plan to spend one percent of our pre-tax profits (including in-kind sup- port) on community development programs to be calculated on a three-year rolling average. Our community programs will focus on self-help initiatives that leave a lasting, positive legacy, particularly in developing countries. The programs will be delivered through for- mal partnerships arrangements with internationally recognized ser- vice providers and will target capacity-building and skill transfer for employees and communities. We intend to contribute in a way that support government programs and infrastructure initiatives without replacing them." "Consideration is given to creating business opportunities for local suppliers and contractors, and the means to fulfill the requirements of these Standards." S O C I O - E C O N O M I C I S S U E S 373 CRS_Annex F 3/3/04 12:17 Page 374 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Local Economic "In April 1996, Freeport committed to donate at least ICMM holds that companies should: Development 1% of annual gross revenues for next 10 years for local "contribute to the social, eco- (Continued) village-based development. ($92 million through 2000)." nomic and institutional develop- The company notes also that it pays a portion direct ment of the communities in which taxes, royalties and dividends to the central govern- we operate; ment, that it directly and indirectly employs local peo- contribute to community develop- ple, and that it procures local goods and services. ment from project development "Freeport will... work with the host country govern- through closure in collaboration ment and responsible NGOs to create and periodically with host communities and their update social integration and/or sustainable develop- representatives; ment plans for all operations sites. These plans shall encourage partnerships with gov- address the issue of economic and social viability of ernments and non-governmental each operating area after cessation of operations." organizations to ensure that pro- "Special efforts will be made to train and hire people grammes (such as community, indigenous to each operational or exploration area." health, education, local business development) are well designed and effectively delivered; enhance social and economic development by seeking opportu- nities to address poverty." 374 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 375 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) "We are committed to MPI holds that "[c]ompanies should implement MAC states that it "[s]upport[s] the improvement in the stan- programs for the employment of the local people." capability of communities to par- dard of living not only of ticipate in opportunities provided our own employees and by new mining projects and exist- families but also of the resi- ing operations" and "[p]rovide[s] dents in the surrounding lasting benefits to local communi- communities." ties through self-sustaining pro- Specific programs include grams to enhance the economic, skills training for income- social, educational and health care generating projects. standards they enjoy." "Millions of pesos are still being spent on our commu- nity development programs every year despite the neg- ative impact of the low metal prices on the com- pany's profitability." S O C I O - E C O N O M I C I S S U E S 375 CRS_Annex F 3/3/04 12:17 Page 376 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Local Economic NMA states that its busi- The company states "We believe that our fundamental social responsibility is "Globally, we participate in a Development ness practices include: that "[i]t has an oblig- to conduct our business profitably in a socially responsi- number of partnerships for (Continued) "being a progressive ation to distribute the ble manner. This is, we believe, the greatest contribution sustainability focusing on and constructive part- wealth generated we can make to the communities where we operate. We large-scale challenges. ner to advance the from resource also believe we have a responsibility to contribute to the Locally, we take part in activi- economic, educational exploitation to its host well-being of these communities in other ways. While this ties that concentrate on the and social infrastruc- communities, through commitment will take different forms in different coun- needs of the area in question." tures of the communi- training and educa- tries and communities, we: "We brought forward a com- ties in which we tion, health, infra- support health, education and environmental initiatives; mitment to our operations in operate; structure and a range support and work with voluntary and charitable orga- Angola to train and develop a creating wealth and of other activities nizations that respond to community needs; workforce consisting mainly of products that con- associated with being donate a minimum of 1% of our domestic pre-tax profit Angolans, who will one day be tribute to economic a `good corporate citi- to community needs; able to run our operations prosperity; zen'. Newmont aims to encourage our employees to volunteer and make it there without expatriate assis- helping eliminate use that wealth to easier for them to do so; tance." poverty and providing invest in enterprises encourage, support and seek partnerships with organi- economic opportunities; which can be sus- zations which need our help, whether they be schools contributing to tained long after the or social service organizations; national, regional and mineral resource has give preference to business partners who conduct local economic well- been depleted." their business in accordance with ethical standards being and security consistent with our own; through creation of draw from the local labor pool to the extent possible." employment opportuni- "Our support of a community must be consistent with ties, wage payments, Noranda's responsibility to generate a profit." purchase of goods and "Our participation is dependent on establishing specific materials and payment goals and performance indicators." of fair and competitive "Our contribution should preferably be based on compe- taxes and usage fees." tencies that are relatively unique to Noranda and its employees and are unlikely to be provided by govern- ments and NGOs." 376 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 377 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company supports local "We will continue to be socially "As an alternative to the making of facilitating pay- economic development through responsible by supporting the ments and as a way of gaining a government's respect "direct employment; goods and communities where we operate and confidence, the Company encourages open and services; development of sup- and protecting and enhancing the transparent contributions to good works such as char- port businesses; compensation environment." ities, education or non-government organizations that payments; education and train- "Relative to [the] company's goal benefit the community as a whole as well as Placer ing; [and the provision of a] to strengthen its commitment to Dome's reputation. Contributions of this nature should development fund." host and neighboring communi- not be made to an organization if the organization is ties, it has adopted the Social tied directly or indirectly to the government depart- Development and Management ment involved in regulating a Placer Dome project." Program as a tool for the imple- The company states that it supports local social mentation of community develop- progress and economic development through its ment programs." "[c]ontribution to the quality of life of employees, local "The company states that it pro- communities, and host countries, while respecting vides "educational assistance for their cultures, needs and priorities" and its "[i]ntegra- students, programs on health, edu- tion of our activities with the economic development cation, livelihood, infrastructure, objectives of local communities and host countries in and income generation projects." which we operate." "While the long-term benefits that our mining activities contribute to society are difficult to quantify, today's operations have a profound and immediate impact on the communities and countries where we do business." "It is our belief that this commitment to environmental protection, social progress and shared economic ben- efit will give us preferred access to mining projects around the world, thus ensuring our continued suc- cess and growth." S O C I O - E C O N O M I C I S S U E S 377 CRS_Annex F 3/3/04 12:17 Page 378 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Local Economic "We support community based projects The company states "Teck Cominco will...foster Development that can make a difference in a sustainable that it works to open and honest dialogue with (Continued) way without creating dependency." "[p]romote and main- all of its stakeholders, respect "These projects aim to provide benefits to tain harmonious under- the rights, interests and aspira- community groups that last beyond the life standing with the tions of local indigenous people of the mine. For example, providing training partner communities and seek out and listen to those or apprenticeships in essential trades, can and other stakeholders in the community who are be of considerable benefit to both the indi- in the management of affected by its operations." vidual and the community. Where commu- community based The company also states that it nities' priorities point towards development resources towards self- will "[s]upport local communi- initiatives for which the operation may not reliance." ties and their development by have skills (agricultural or education pro- seeking locally-sourced goods jects, for example), operations are encour- and services and employing aged to partner with organisations who local people." have local expertise." "The operations use their best efforts to hire local people so that the full value of the income accrues locally." "Training and skills develop- ment in the local population can provide lasting benefits while royalty and tax payments contribute to the provision of infrastructure, education, health care and other services. Teck Cominco focuses on train- ing at all operations and sup- ports the provision of education and health services directly through charitable contribu- tions and indirectly through taxes and royalty payments." 378 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 379 World Coal Union Cement Corporation WMC Resources Institute International Standards "Union is an active and responsi- "Since 1998, businesses tendering for contracts The World Coal Institute ble member of the communities with WMC are required, as part of their proposal or states that it promotes where it operates. Every plant has tender submission, to declare their intention to develop "support by individual full time staff working with the and implement a Local Community/Indigenous coal companies for communities in planning, imple- People plan incorporating employment, training and community development menting and maintaining socio- business opportunities." initiatives to address economic programs towards "As we invest in exploration, development, produc- local sustainability building sustainable and empow- tion and closure we, in consultation with host com- issues, providing ered communities." munities, government authorities and other enhanced economic "Union focuses in three major organisations: and social opportunities activities in fulfilling its Corporate encourage and support community development; relevant to the location Social Responsibility (CSR): edu- encourage and support initiatives to enhance and scale of their cation, livelihood, [and] infra- social benefits such as environment, health and operations." structure. These focus CSR education; programs are implemented along identify and facilitate opportunities for employ- side assisting the government in ment, training and business relationships directly providing basic social services and through our contractors and such as water supply, medical suppliers." and health in the communities where Union operates." S O C I O - E C O N O M I C I S S U E S 379 CRS_Annex F 3/3/04 12:17 Page 380 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Bribery and "Alcan funds must not be used to make pay- "No gift, favor or entertainment should be accepted "We are implacably opposed to corruption. Corruption/ ment directly or indirectly (through agents or or provided if it will obligate or appear to obligate We will not offer, pay or accept bribes or Facilitation Payments otherwise) in money, property, services or the person who receives it. Receiving or giving gifts condone anti-competitive practices in our any other form to a government official, polit- of cash or cash equivalents is never allowed." dealings in the marketplace and will not tol- ical party or candidate for political office to The company adheres to the Foreign Corrupt erate any such activity by our employees." induce the recipient to (1) exert influence to Practices Act. assist the company in obtaining or retaining The company allows facilitating payments if they are: business; (2) commit any act in violation of "allowed under local law and no alternative; made to lawful duty." obtain routine government action and [the] company "In Marketing and Sales, we must never give meets all requirements; payment is accurately identi- or receive improper payments or gifts to or fied and recorded in books." The company directs its from anyone in connection with the sale or employees to consult with legal counsel before purchase of products or services even at the accepting facilitating payments. cost of foregoing business opportunities." The company notes that "[t]he Law distin- guishes between facilitating payments and bribes, (i.e. it allows certain facilitating pay- ments)" and that "these payments must also be allowable under the other country's laws. The dividing line between facilitating pay- ments and improper payments is often diffi- cult to determine." The company recommends that if an employee is in doubt with regards to a payment, the employee should consult a company lawyer. 380 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 381 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must not, "BHP Billiton does not countenance the making "CEMEX employees will never in any country in which it undertakes of payments or payments in kind to influence promise, offer, commit, lend, activities, engage in any conduct that individuals to award business opportunities to give or in any way transfer is misleading or deceptive or which is BHP Billiton or to make a decision in company's directly or indirectly any part likely to mislead or deceive." favor..." of the company's assets if Company policy states "Never make or agree to such contribution is unlawful make such payments. Under no circumstance or intended for an illegal pur- will company approve any irregular payment or pose." in kind to win business or to influence a busi- The company's Code of Ethics ness decision. Bribes, kickbacks secret com- is being revised and "accord- missions and similar payments are strictly ing to the Securities and prohibited." Exchange Commission's dispo- The company's Gifts and Entertainment Policies sitions will comply with the state "[c]ash can never be given." United States Foreign Corrupt "BHP Billiton is opposed to making such pay- Practices Act." ments (facilitation) as a matter of policy and every effort should be made to resist them. Company recognizes, however, that sometimes it is necessary. Minor facilitation payments can be made if certain criteria are met. [These pay- ments] Must be accounted for clearly and accurately." S O C I O - E C O N O M I C I S S U E S 381 CRS_Annex F 3/3/04 12:17 Page 382 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Bribery and Corruption/ "[The company's Ethics and Business ICMM holds that companies should: Facilitation Payments Conduct Policy] prohibits employees from "implement and maintain ethical business (Continued) making, offering , promising, or authorizing practices and sound systems of corporate any payment or use of any funds, assets, or governance; anything of value for the benefit of any develop and implement company state- individual (including any government offi- ments of ethical business principles and cial), company or organization,...which is practices that management is committed designed to secure, or is offered for secur- to enforcing; ing, any improper business advantage for implement policies and practices that Freeport or any other person. This policy seek to prevent bribery and corruption; applies regardless of whether the payment comply with or exceed the requirements or use is lawful under the laws of a partic- of host-country laws and regulations; ular country." implement and maintain ethical business "Policy also prohibits payments, transfers, practices and sound systems of corporate offers, or promises of Freeport's funds, governance." assets, or anything of value not properly authorized, properly accounted for and clearly and accurately identified on Freeport's books and records." "Payments made to foreign government officials to secure routing governmental action (such as processing visas, providing mail delivery, or unloading cargo) may be permitted pursuant to specific Freeport guidelines or upon specific authorization by Freeport's compliance officer or designee if they do not involve discre- tionary action by an official, are customary and necessary, modest in amount, and are properly recorded in Freeport's books and records." 382 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 383 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) MPI holds that "[c]ompanies should not become MAC states that it will "obtain involved in the drafting of legislation for govern- and maintain business through ments in which they have a vested interest." ethical conduct." S O C I O - E C O N O M I C I S S U E S 383 CRS_Annex F 3/3/04 12:17 Page 384 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Bribery and Corruption/ NMA states that its "We do not allow our decisions to be improperly "To preserve their independence Facilitation Payments business practices influenced; we do not attempt to improperly influ- and integrity, Hydro employees (Continued) include "[a]dhering to ence the decisions of others to obtain or retain are not allowed to give or receive the highest ethical busi- business." money or other forms of payment ness practices in all our "We will not engage in this practice even if it in business connections. Any gifts operations and interact- means that we must sometimes walk away from shall be modest and in line with ing with communities in opportunities. We therefore: locally accepted good business a responsible manner." do not offer or make any payment (in money, practice". property, services or any other form) directly, "We are actively involved in the or indirectly through an agent or consultant, to fight against corruption. In 2002, any government official, political party, politi- Hydro signed an agreement with cal party official, or candidate for political Transparency International office for the purpose of persuading that per- Norway and has contributed to son to exert influence in order to assist their Business Principles of Noranda in obtaining or retaining business; Countering Bribery." take measures reasonably within our power to "We do restrict facilitation ensure that any payment made to an agent is payments." appropriate remuneration for legitimate ser- vices rendered and that no part is passed on by the agent as a bribe." 384 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 385 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company's Ethics Code provides "Under no circumstances should a payment or gift be that "[a]n employee will not offer or made or offered to a public official with a view to pay any bribe, kickback or illegal assisting Placer Dome to obtain or retain business, or gratuity or payment, directly or indi- to effect the enactment or enforcement of any laws. rectly, to any person, organization, Participation, whether directly or indirectly , in any or governmental representative. An bribe, kickback, contribution or similar payment is employee will not accept any bribe, prohibited." kickback or other payment or illegal "Payments or commission fees made to commercial gratuity directly or indirectly, from agents & other representatives, such as joint venture any person, organization or govern- partners, which are unreasonably large or could rea- mental representative." sonably be expected to eventually end up in the hands "All dealings with officials of foreign of a public official, are prohibited. Accordingly, governments must be conducted in appointments of agents or other representatives compliance with the Foreign Corrupt including joint ventures partners, should be approved Practices Act (FCPA). The FCPA pro- by a senior Manager & the Legal Department of the hibits payments of, or promises to pay, relevant Company office to ensure compliance with anything of value to officials of foreign Placer Dome's legal obligations." governments in order to obtain or "Placer Dome is opposed to the making of these facili- retain business. If employees violate tating payments, and every effort should be made to the FCPA, the violation creates severe resist or minimize them."xv potential criminal and civil liability for "As an alternative to the making of facilitating pay- themselves and the company." ments and as a way of gaining a government's respect The company's "Gifts and and confidence, the Company encourages open and Entertainment Policy prevents gifts, transparent contributions to good works such as char- etc, if it might impair or appear to ities, education or non-government organizations that impair employee's ability to exercise benefit the community as a whole as well as Placer judgment in fair and impartial Dome's reputation. Contributions of this nature should manner." not be made to an organization if the organization is tied directly or indirectly to the government depart- ment involved in regulating a Placer Dome project." S O C I O - E C O N O M I C I S S U E S 385 CRS_Annex F 3/3/04 12:17 Page 386 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Bribery and Corruption/ "Bribery, in all its forms, is prohibited. We neither "The Teck Cominco Code of "An enterprise should develop a Facilitation Payments promise, offer nor accept bribes or anything which Conduct provides that when [Programme for Countering (Continued) could be taken for one, either directly or indirectly. dealing with public officials, all Bribery]... which should, clearly We only make payments for legitimate business dealings between employees and in reasonable detail, articulate services and at a rate that reflects their market and public officials or other per- values, policies and procedures to value." sons will be conducted in a man- be used to prevent bribery from "The only way to guarantee compliance with UK ner that will not compromise the occurring in all activities under its laws on bribery is to avoid making facilitation pay- integrity or question the reputa- effective control." ments anywhere in the world." tion of any public official or other "The Programme should be consis- person, the Company or its affili- tent with all laws relevant to coun- ates. Even the appearance of tering bribery in all the jurisdictions impropriety in dealing with pub- in which the enterprise operates...." lic officials and others is not "The enterprise should prohibit the consistent with this principle. offer, gift, or acceptance of a bribe Participation, whether directly or in any form, including kickbacks, on indirectly, in any bribes, kick- any portion of a contract payment, backs, contributions or similar or the use of other routes or chan- payments is also contrary to this nels to provide improper benefits to principle, whether or not they customers, agents, contractors, might further the business inter- suppliers or employees of any such ests of the Company." party or government officials." "The enterprise should also prohibit an employee from arranging or accepting a bribe or kickback from customers, agents, contractors, suppliers, or employees of any such party or from government officials, for the employee's benefit or that of the employee's family, friends, associates or acquaintances." "The enterprise should ensure that charitable contributions and spon- sorships are not being used as a subterfuge for bribery." "The enterprise should publicly disclose all its charitable contribu- tions or sponsorships." "Recognising that facilitation pay- ments are a form of bribery, the enterprise should work to identify and eliminate them." 386 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 387 World Coal Union Cement Corporation WMC Resources Institute International Standards The company's Code requires employees to "[act] Organisation for Economic Co-operation and fairly and honestly at all times" and to "not [use] Development (OECD) Convention on Combating Bribery. WMC funds to provide unreasonable benefits such UN Norms: as gifts or entertainment for ourselves or others." "Transnational corporations "shall not offer, promise, "Where paying facilitation fees would break the give, accept, condone, knowingly benefit from, or law, WMC does not make such payments. If it is demand a bribe or other improper advantage. Nor shall legal to pay facilitation fees and this is local busi- they be solicited or expected to give a bribe or other ness practice, you should review the matter with improper advantage to any government, public official, your supervisor." candidate for elective post, any member of the armed forces or security forces, or any other individual or organization." Transnational corporations and other business enter- prises shall recognize and respect applicable norms of international law; national laws; regulations; adminis- trative practices; the rule of law; the public interest; development objectives; social, economic, and cultural policies including transparency, accountability, and prohibition of corruption; and authority of the countries in which the enterprises operate. Commentary on UN Norms: Transnational corporations and other business enterprises shall enhance the trans- parency of their activities in regard to payments made to governments and public officials; openly fight against bribery, extortion, and other forms of corruption; and cooperate with State authorities responsible for combat- ing corruption. [In June 2002, Transparency International joined more than 30 other NGOs in launching "Publish What You Pay" campaign, calling on the G7 nations to take leadership and promote transparency worldwide. A central action will be for stock market regulators to require oil, gas and mining companies to publish net taxes, fees, royalties and other payments to all national governments as a condition for being listed on international stock exchanges and financial markets.] S O C I O - E C O N O M I C I S S U E S 387 CRS_Annex F 3/3/04 12:17 Page 388 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Political "Whether or not local laws restrict the use of In the United States the company does not allow Contributions corporate funds in support of political parties, the following: "[support of or involvement in] politi- it is our general policy not to make contribu- cal action committees;... donations of funds, use tions to political parties at any level of gov- of company property, time or employee reimburse- ernment...." ment for candidates, parties or campaigns." "In exceptional cases and where local law Employees may contribute to public initiative cam- permits, a political contribution may be made paigns. with the approval of Alcan's CEO. Any such Outside the United States, where local law permits, contribution must be consistent with our the "CEO and General Counsel must review in belief that Alcan's role is complementary to advance and approve in writing any such donation." the responsibility of governments." Financial "All financial transactions are to be properly The company does not allow its employees to The company is a participant in the Transparency recorded in the books of account and hide "the true nature of any transaction." Extractive Industries Transparency Initiative accounting procedures are to be supported "Donations must be fully documented, properly (EITI).ii by necessary internal controls...." identified and recorded on company's books." "We must...not create or participate in the "Facilitating Payments must also be accurately creation of any records that are intended to identified and recorded." conceal anything that is improper." 388 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 389 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "BHP Billiton maintains a position of impartiality "CEMEX acknowledges and with respect to party politics. Accordingly, BHP respects the right of its Billiton does not contribute funds to any political employees to participate in party, politician, or candidate for public office in activities external to the com- any country." pany, such as politics." "CEMEX employees have the right to make political contri- butions on their own behalf, provided they do not associate them with CEMEX under any circumstances, either directly or indirectly." The company is a participant in the EITI. "We are committed to full transparency in our communi- cations and actions. We are principled and will conduct all of our business activities with the highest of ethical standards." S O C I O - E C O N O M I C I S S U E S 389 CRS_Annex F 3/3/04 12:17 Page 390 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Political "[The company's Ethics and Business Conduct Policy] prohibits ICMM holds that compa- Contributions contributing funds to any candidate for political office, official of nies should: "[i]mplement (Continued) a political party, or committee or organization for the election of a and maintain ethical busi- particular candidate to any political office (federal, state, or local) ness practices and sound in the United States or in foreign countries. Any requests or pro- systems of corporate gov- posals for contributions to political parties by Freeport are to be ernance." submitted to Freeport's compliance officer who will arrange for necessary review and approval by senior management." "Policy does not preclude Freeport from establishing programs, permitted by applicable law, under which it may make (1) contri- butions to any related political committee so as to match, in whole or in part, a contribution voluntarily made to that commit- tee by an eligible employee or other individual, (2) contributions to any state political committee sponsored by an industry or trade association of which Freeport or any subsidiary is a mem- ber, or (3) other contributions permitted by law and specifically authorized by management." Financial "Members shall "The honesty, integrity and sound judgment of the Chief Executive Officer, ICMM holds that compa- Transparency conduct their Chief Financial Officer, Controller-Financial Reporting (the principal account- nies should: "[i]mplement (Continued) affairs in a properly ing officer) and persons performing similar functions, are fundamental to the and maintain ethical busi- accountable man- reputation and success of Freeport. To the best of their knowledge and abil- ness practices and sound ner with respect to ity, the Chief Executive Officer and those officers performing accounting, systems of corporate gov- all financial mat- financial management or similar functions (`Financial Officer') must: ernance." ters, and the envi- act with honesty and integrity, avoid actual or apparent conflicts of ronmental and interest in personal and professional relationships, and fully disclose social aspects of to the Board of Directors any material transactions or other relation- their operations." ship that reasonably could be expected to give rise to such a conflict; provide colleagues with information that is accurate, complete, objec- tive, relevant, timely and understandable; provide full, accurate, timely, and understandable disclosure for reports and documents filed with, or submitted to, the Securities and Exchange Commission and other public communications; comply with applicable laws, rules, and regulations of federal, state, and local governments (both foreign and domestic) and other appro- priate private and public regulatory agencies; act at all times, including but not limited to the matters specified herein, in good faith, with due care, competence and diligence, with- out misrepresenting material facts; promote ethical and honest behavior within the company; ensure responsible use of and control of all assets, resources and information of Freeport." 390 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 391 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) MAC states that it will "obtain and maintain business through ethical conduct." MAC states that it works to "[conduct] all facets of our busi- ness with excellence, trans- parency and accountability." S O C I O - E C O N O M I C I S S U E S 391 CRS_Annex F 3/3/04 12:17 Page 392 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Political "Hydro does not give financial Contributions contributions to political parties. (Continued) This does not preclude Hydro from supporting political views in the interest of the company." Financial The company is a partici- The company states that it: The company states that it encour- Transparency pant in the EITI. maintains "a record of the names and terms of ages "transparency and providing (Continued) employment of our agents; timely information so that the out- ensure that proper systems of control are in side world can continuously follow place to prevent and detect the payment of our efforts and form their own bribes; opinions." record all transactions and expenses accu- rately, completely and promptly; Not conceal any fund or transaction from management or our auditors." 392 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 393 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. "Phelps Dodge does not, directly or "The Company encourages employees to participate indirectly, make contributions or other in partisan political activities, provided that they do not payments or provide property or ser- involve the use of Company funds, time, equipment, vices to any candidates for public supplies, facilities, or other resources." office or to political parties. Any "Placer Dome may from time-to-time, make contribu- employee who makes a political con- tions to candidates, their campaigns or political par- tribution personally should ensure ties where permitted by law, but only with the approval that he or she does not imply that it is of the Donations Committee of Placer Dome, or in the a contribution from the company. case of the regional Business Units, the CEO of the Phelps Dodge encourages its employ- subsidiary company." ees to be actively involved in the civic "Each employee is encouraged to participate in the affairs of the communities in which electoral process as a citizen and to fully exercise his they live. When speaking on public or her rights to vote." issues, however, employees should do "When employees participate in personal political so only as individual citizens of the activities, they should ensure that it is clear that they community, and must be careful not to are acting on their own behalf and not as a represen- create the impression that they are tative of the company." acting on behalf of or representing the views of Phelps Dodge. The only exception to this is employees who have appropriate authorization to speak on behalf of the company." "We are committed to conduct our "We are committed, both in principle and in practice, business both ethically and legally, to the maximum level of transparency consistent with and to present its financial informa- normal commercial confidentiality. Transparency can tion in a manner that will not mis- be defined as `openness to public scrutiny'." lead or misinform those who "Placer Dome's accounting and financial records must receive and use it." reflect, in an accurate, complete and timely manner, all transactions affecting the Company in order to meet statutory requirements and to ensure proper preparation of the Company's financial statements. Transactions must be properly authorized and approved and recorded in accordance with both the relevant generally accepted accounting principles and the highest standards of integrity. There shall be no cash funds, bank accounts, investments or other assets which are not recorded or are inadequately recorded in the Company's accounting records." S O C I O - E C O N O M I C I S S U E S 393 CRS_Annex F 3/3/04 12:17 Page 394 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Political "Rio Tinto does not directly or indirectly partici- "The Teck Cominco Code of "The enterprise, its employees or agents Contributions pate in party politics nor make payments to polit- Conduct provides that when should not make direct or indirect contributions (Continued) ical parties or individual politicians." dealing with public officials, all to political parties, organisations or individuals "Rio Tinto's prohibition of political payments dealings between employees engaged in politics, as a way of obtaining applies to political parties and organizations as and public officials or other per- advantage in business transactions." well as to individual incumbents and candi- sons will be conducted in a "The enterprise should publicly disclose all its dates... The spirit of Rito Tinto's policy should manner that will not compro- political contributions." also be applied in parts of the world where for- mise the integrity or question mal political institutions may be weak or nonexis- the reputation of any public offi- tent. In these cases, our community spending cial or other person, the ought to benefit local people as a whole rather Company or its affiliates. Even than enrich influential individuals. Nothing in this the appearance of impropriety policy seeks to restrict employees acting purely in dealing with public officials in their capacity as individual citizens from par- and others is not consistent ticipating in the democratic political process." with this principle. "Rio Tinto represents views to government and Participation, whether directly others on matters affecting its business interests or indirectly, in any bribes, kick- and those of shareholders, employees and others backs, contributions or similar involved in our activities. By fostering such pub- payments is also contrary to lic dialogue, we contribute to the development of this principle, whether or not sound legislation and regulation that is relevant they might further the business and appropriate to our business interests." interests of the Company." "Our commitment, both in principle and practice, "Section 4 of the Teck "The enterprise should maintain accurate books and is to maximum transparency consistent with Cominco Code of Conduct Financial Transparency records, available for inspection, which properly and good governance and commercial confidential- stipulates that the Company's (Continued) fairly document all financial transactions. The enter- ity... We use the most appropriate accounting books and records will reflect, prise should not maintain off-the-books accounts." and reporting policies, consistently applied and in an accurate and timely "To be effective, the [enterprise's Programme for supported by reasonable and prudent judg- manner, all Company transac- Countering Bribery] should rely on employees and ments. We prepare financial statements in tions. All officers and employ- others to raise concerns and violations as early as accordance with generally accepted accounting ees that are responsible for possible. To this end, the enterprise should provide principles." financial or accounting mat- secure and accessible channels through which The company is a participant in the EITI. ters are required to ensure employees and others should feel able to raise con- the full, fair, accurate, timely cerns and report violations ("whistle-blowing") in and understandable disclo- confidence and without risk of reprisal." sure in all periodic reports "The enterprise should establish effective internal required to be filed by the and external communication of the Programme." Company with securities and "The enterprise should, on request, publicly other regulatory authorities." disclose the management systems it employs in countering bribery." "The enterprise should be open to receiving communications from relevant interested par- ties with respect to the Programme." 394 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 395 World Coal Union Cement Corporation WMC Resources Institute International Standards "WMC Resources donates to political parties, hav- UN Norms: Transnational corporations and other business ing regard to policies that may impact on its share- enterprises shall recognize and respect applicable norms holders. Party Policies are reviewed in detail by the of international law; national laws; regulations; adminis- board prior to making any commitment. No political trative practices; the rule of law; the public interest; devel- donations were made during 2002." opment objectives; social, economic, and cultural policies including transparency, accountability, and prohibition of corruption; and authority of the countries in which the enterprises operate. UN Norms: Transnational corporations "shall not offer, promise, give, accept, condone, knowingly benefit from, or demand a bribe or other improper advantage. Nor shall they be solicited or expected to give a bribe or other improper advantage to any government, public official, candidate for elective post, any member of the armed forces or security forces, or any other individual or organization." Commentary on UN Norms: Transnational corporations and other business enterprises shall assure that the infor- mation in their financial statements fairly presents in all material respects the financial condition, results of oper- ations, and cash flows of the business. S O C I O - E C O N O M I C I S S U E S 395 CRS_Annex F 3/3/04 12:17 Page 396 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Competition and "Alcan must act independently and in its own "Alcoa believes in free and open competition. We "We will not offer, pay or accept bribes or Pricing interest in all commercial situations affecting will comply fully with competition and anti-trust condone anti-competitive practices in our competitive conditions of trade and avoid laws." dealings in the marketplace and will not tol- practices that restrict competition." erate any such activity by our employees." The company states that employees should "never enter into agreements w/ competitors on issues such as price; costs; rate, type or amount of production; customers; must refrain from use of market power or informa- tion to restrict competition, avoid any unfair or deceptive act or practice." "It is the responsibility of each manager to comply with the letter and spirit of all compe- tition laws as they apply to Alcan." 396 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 397 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must not, in With regards to laws regarding competition, the any country in which it undertakes company states that it "shares an interest in the activities, enter into or carry out or conduct of business in a competitive environ- give effect to any anti-competitive ment. Conduct in breach of these (competition) agreement with another person." laws is strictly prohibited and must be avoided. Collusive conduct in particular will not be toler- ated by BHP Billiton." S O C I O - E C O N O M I C I S S U E S 397 CRS_Annex F 3/3/04 12:17 Page 398 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Competition and "[The company's Ethics and Business ICMM holds that companies should: Pricing (Continued) Conduct Policy] promotes compliance with "integrate sustainable development con- antirust laws by describing antitrust law siderations within the corporate decision- prohibitions and penalties." making process; support public policies and practices that foster open and competitive markets; implement good practice and innovate to improve social, environmental and eco- nomic performance while enhancing shareholder value." 398 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 399 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) S O C I O - E C O N O M I C I S S U E S 399 CRS_Annex F 3/3/04 12:17 Page 400 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Competition and "We strongly believe in a free market economy Hydro has adopted an extensive EU Pricing (Continued) and embrace the fair competition upon which it Competition Compliance program. flourishes. Consequently, we avoid all actions The aim of the Compliance Program which are anti-competitive or otherwise contrary is to avoid situations in which Hydro to the laws that govern competitive practices in may be in breach of the competition the marketplace. We do not: rules, and to avoid unnecessary make agreements or employ practices in suspicion among competition restraint of trade such as price-fixing, bid rig- authorities. The Program includes ging and kickbacks; measures designed to: employ illegal or otherwise improper means to provide for the knowledge nec- obtain our competitors' information; essary to avoid breaches of [conduct]... insider trading." competition law; and to reinforce a positive and proac- tive attitude towards compliance. There are three important elements of the Program: (1) A compliance manual has been developed; (2) Competition Compliance officers are appointed and; (3) Courses and seminars are conducted by compe- tition lawyers from the Corporate Legal Department. 400 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 401 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. "We are committed to compliance with the antitrust laws of the United States, and with the laws regulating competitive practices in other loca- tions where we do business." The company states that it provides "[e]xtensive guidance...on prac- tices that may constitute violations of anti-trust, predatory pricing, dis- criminatory pricing, reciprocity, etc." S O C I O - E C O N O M I C I S S U E S 401 CRS_Annex F 3/3/04 12:17 Page 402 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Competition and "We support free and fair competition." "Section 1 of the Teck Cominco Pricing (Continued) Code of Conduct stipulates that the Company promote fair com- petition and requires employees to avoid all transactions which could be construed as being anti-competitive." 402 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 403 World Coal Union Cement Corporation WMC Resources Institute International Standards The company's code requires employees to "not UN Norms: Transnational corporations "shall act in [use] coercive or misleading practices." accordance with fair business, marketing, and advertising practices and shall take all necessary steps to ensure the safety and quality of the goods and services they provide, including observance of the precautionary principle." Commentary on UN Norms: "A transnational corporation or other business enterprise shall encourage the develop- ment and maintenance of fair, transparent, and open competition by not entering into arrangements with com- peting businesses to either directly or indirectly fix prices, divide territories, or create monopoly positions." UNCTAD Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Business Practices. S O C I O - E C O N O M I C I S S U E S 403 CRS_Annex F 3/3/04 12:17 Page 404 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Mine Closure "Alcan has commitments in place to return "Extensive standards and planning are contained "Seeking to manage the impacts (of decom- [mining] sites to conditions agreed upon with in the 14-page Bauxite Mine Rehabilitation missioning) is increasingly a standard ele- local authorities." Standards." ment in our planning for new "Rehabilitation Planning must be an integral part of operations...Our objective, through life of the mine planning process...Budgetary allocations operation, is to enhance the human capital must be provided for all aspects of the rehabilita- of the local community and to seek to nur- tion plan...Pre-determined rehabilitation criteria ture an alternative base for economic viabil- and strategy, based on pre-mining assessments..." ity post-closure...Post closure community development should form part of initial Environmental and Social Impact Assessments and be used to develop perfor- mance targets as operations evolve." "Our mining and quarrying operations have formal, costed closure and rehabilitation plans in place. These [were due to be] reviewed in 2002." 404 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 405 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Mine closure is recognized to be an "[HSEC principles are] an integral part of busi- important aspect of the life cycle of ness planning with goals and targets established every mine. For this reason mine clo- to drive continuous improvement in perfor- sure is included in project planning mance." and budgeting. Mine closure includes Closure, decommissioning, remediation and planning for workforce reduction, rehabilitation plans are established, fully costed, community effects, demolition, final documented and annually reviewed. reclamation, post-mining land use, and monitoring. Site restoration includes contouring the land, replac- ing topsoil, and seeding to re-estab- lish the native flora, stable landforms, and post-mining land use. Ongoing water monitoring, and where neces- sary water treatment, ensures that impacts on water supplies and sys- tems are properly managed." S O C I O - E C O N O M I C I S S U E S 405 CRS_Annex F 3/3/04 12:17 Page 406 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Mine Closure "Environmental pro- Commission calls for "Freeport will... work with the host country ICMM holds that companies should: (Continued) tection will be consid- a complete inventory government and responsible NGOs to cre- "plan, design, operate and close opera- ered throughout the of abandoned mine ate and periodically update social integra- tions in a manner that enhances sustain- life of the mine, from sites and unrestored tion and/or sustainable development plans able development; exploration to mine quarries. for all operations sites. These plans shall design and plan all operations so that ade- closure." address the issue of economic and social quate resources are available to meet the viability of each operating area after cessa- closure requirements of all operations; tion of operations." rehabilitate land disturbed or occupied by "PT Freeport Indonesia's Environmental operations in accordance with appropriate Policy mandates that lands impacted by our post-mining land uses; mining and support operations will be assess the positive and negative, the reclaimed or revegetated. The company's direct and indirect, and the cumulative comprehensive Environmental environmental impacts of new projects - Management program includes ongoing from exploration through closure; reclamation projects and intensive planning contribute to community development from for future reclamation and revegetation at project development through closure in the conclusion of the mining process. This collaboration with host communities and is a key part of the Mine Closure Plan." their representatives." 406 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 407 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) MPI holds that "[f]ull costs of rehabilitation and "Planning for closure in the feasibility and MAC states that it will ongoing monitoring should be borne by the devel- design phases of a project and regularly review- "reclaim sites in accordance oper." ing plans to consider changes in site conditions, with site-specific criteria in a "Companies should be required to rehabilitate technology and community expectations." planned and timely manner; land as closely as possible to its pre-mining con- MCA's Mine Closure Policy states that it "recog- be responsive to community dition." nizes that responsibility for regulation mine clo- priorities, needs and interests "Companies should ensure that accounting prac- sure rests primarily with the State and Territory through all stages of mining tices identify all costs, such as environmental and governments and [it] will work with the State and exploration, development, oper- social costs, associated with company operations Territory Minerals Councils/Chambers and these ations and closure; and these are taken into account in actual pricing Governments to achieve effective regulatory and provide lasting benefits to local of resources and, where appropriate lodged in other approaches that recognize the needs of all communities through self-sus- trust funds for post mine rehabilitation." interested parties." taining programs to enhance "The object for closure is to leave sites in a the economic, social, educa- condition which is safe, stable, and limits fur- tional and health care stan- ther environmental impacts so that mining tene- dards they enjoy." ments can be relinquished for alternative use."ix "MCA supports multiple and sequential land uses, and is committed to maximizing future land use options through strategic closure planning." "MCA also has 27-page Mine Closure Strategic Framework."x S O C I O - E C O N O M I C I S S U E S 407 CRS_Annex F 3/3/04 12:17 Page 408 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Mine Closure NMA states that its "Each Newmont operation "Noranda aims to minimize land disturbance and (Continued) business practices will develop, during the to restore disturbed land to a state of productive include: design phase, and imple- use." "developing ment closure and reclama- "We are committed to reducing our impact on the approaches to mine tion plans that provide for land that we use and minimizing the volume of planning and develop- long-term environmental tailings that need to be stored. Our goal is clear: ment that are respon- stability and suitable post- every project must have the least possible impact sive to possible mining beneficial land on the environment while meeting business environmental uses." objectives of the Company." impacts through every "Closure and reclamation "The Noranda Closure and Reclamation Policy stage of the mine are the completion of the life sets the objectives for our actions: cycle including clo- cycle of a mining operation. To protect public health and safety sure and post-closure The post closure environ- To alleviate environmental damage activities; mental condition and benefi- To ensure the productive use of the land con- planning in advance cial and uses of Newmont sistent with the original condition." for the timely recla- sites is the company's last- "Planning for the closure and rehabilitation of a mation of sites in ing legacy. Consideration of mine site begins before the mine even opens, accordance with site closure and reclamation during the feasibility study of the potential site. specific criteria and must occur during the We include these costs in the financial plan when recognizing commu- design of a project and must evaluating a project, and funds are set aside for nity priorities, needs be included as an integral closure and reclamation work. The ultimate goal and interests as the component during the life of is to return the land to a productive state for mine approaches and the operation. The opera- those who live in the community where the mine reaches closure; tions will be managed during operated, within minimal surveillance and main- assisting in address- the life of each facility in a tenance required." ing legacy issues manner consistent with full through existing implementation of the clo- mechanisms and laws sure and reclamation plan. and by working with The cost of reclamation and appropriate govern- closure must also be ment bodies to estab- included in all front-end lish responsible, project evaluations. balanced and cost- Adequate financial provi- effective solutions." sioning for closure and reclamation will be provided in all operations." 408 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 409 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company states that it complies "Consideration of closure requirements now begins with all Superfund laws and during exploration and is dominant throughout the regulations. mine cycle. Land is reclaimed progressively as it becomes available after exploration, construction and throughout operations. All sites have developed clo- sure plans that outline the concepts and mechanics of the physical closure of the mine. The cost of reclama- tion and closure is integrated into strategic planning and decision-making. To fully satisfy the objectives of Placer Dome's Sustainability Policy, these plans need additional work to develop further the components and concepts that will meet the needs of the communities and society at large. These will be dynamic plans due to our changing world and local communities. Flexibility will be necessary to accommodate new stakeholders and evolving issues." S O C I O - E C O N O M I C I S S U E S 409 CRS_Annex F 3/3/04 12:17 Page 410 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Mine Closure "High standards of environmental management The company "Teck Cominco will... include (Continued) during mine life reduce closure costs and hasten states that it closure and reclamation plans rehabilitation. All Rio Tinto operations are required works to as a critical component of all to have closure plans that are regularly reviewed "[c]onserve envi- development projects. and updated." ronmental Undertake progressive reclama- Closure planning guidelines have been developed resources by tion at operating mines and to help businesses implement Rio Tinto policies on incorporating reclaim dormant sites to ensure closure of operations. environmental long-term protection of the The guidelines require a closure planning process, protection and environment." including a closure study to identify legal and regu- rehabilitation dur- latory requirements and community expectations; a ing the planning closure strategy which identifies post closure land stage and project use, targets, scope and costs; a closure statement implementation." to document the strategy; and, regular review of the strategy in the light of changing circumstances. In dealing with financial provision the guidelines state that closure and restoration costs include dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas. Costs are provided for over the life of each operation. We are also undertaking a mine closure study to seek improvements in the way closure of opera- tions is planned and implemented. Decommissioning is the activity which implements the strategy. It requires a full plan of action informed by a feasibility study drawn up two to five years prior to the planned date of termination of production. Post decommissioning management is required with periodic monitoring. Where operations are closed, we complete the rehabilitation of land we have disturbed in consul- tation with our neighbours and in accordance with best environmental practice, relevant laws and regulations. 410 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 411 World Coal Union Cement Corporation WMC Resources Institute International Standards Standards and policies The company's Environmental Policy states that it IFC: Project sponsors are required to prepare and imple- with regards to mine clo- works to "rehabilitate the environment affected by our ment a mine reclamation plan. The plan should include sures are included in the activities. reclamation of tailings deposits, any open pit areas, sedi- company's Environmental WMC is responsible for managing the land that it owns mentation basins, and abandoned mine, mill, and camp Protection Program. or leases to minimise the long-term impact of its opera- sites. The main objectives of the mine reclamation plan tions. As a temporary user of land, WMC is also responsi- are: ble for leaving a site, at the conclusion of its operations, a) return the land to conditions capable of supporting in a condition that maintains the available options for the prior land use or uses that are equal to or better than future use of the land. prior land use, to the extent practical and feasible; The state in which we close our operations is often the b) eliminate significant adverse effects on adjacent water only way in which others will remember how responsible resources. we are. Therefore, to ensure that we have continued Mine reclamation plans should incorporate the following access to other properties, it is vital that we practice a components: high standard of closure. Also, by minimising impact and conducting progressive rehabilitation, we will minimise a) conserve, stockpile, and use topsoil for reclamation; security deposits required by the authorities. b) slopes of more than 30% should be recontoured to min- Part of the closure process should include an assess- imize erosion and runoff; ment of all potential liabilities that may extend beyond c) native vegetation should be planted to prevent erosion property boundaries. The environmental status at the and encourage self-sustaining development of a pro- time of closure may become important in the future when ductive ecosystem on the reclaimed land; governments or others may wish to assign responsibili- d) budget and schedule for pre- and post-abandonment ties for contamination or degradation. reclamation activities; The company will: e) plan views that show areas cleared, mined, refilled, and revegetated during each of the next 5 years and "develop agreed completion criteria and have a clo- estimated activities at subsequent 5-year intervals. sure plan in place for existing operations and before the commissioning of any new facility or operation, to Upon underground mine closure, all shaft openings must maintain options for future land use; be concrete capped. Mine shafts should be sealed and, to consult with interested parties in the development and the extent practical, measures taken to reduce or elimi- implementation of the closure plan; nate acid drainage. (Open Pit Mining, Underground do trials and research to ensure successful rehabilita- Mining Standards). tion; minimise the environmental impacts of overburden and waste rock; establish a stable post-operating landscape that is compatible with surrounding landforms; do progressive rehabilitation to ensure minimum requirements at closure; leave a site in a condition that is consistent with the agreed closure criteria; throughout the life of the operation, review the closure criteria, plan to meet changing requirements and expectations, and progressively allocate financial pro- visions to complete the closure plan."xvii S O C I O - E C O N O M I C I S S U E S 411 CRS_Annex F 3/3/04 12:17 Page 412 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Artisinal and Small- Scale Mining Voluntary Initiatives The company is a participant in the Global The company "[e]ndorses The "We respect the laws of host countries whilst seeking to Mining Initiative (GMI), and the Mining, Business Roundtable Principles of observe, within our operations, the universal standards Minerals and Sustainable Development Corporate Governance, dated May promulgated by leading intergovernmental organizations." (MMSD) project. 2002, which is a comprehensive state- "We believe we have the right and the responsibility to The company's greenhouse gas (GHG) pro- ment of responsible corporate gover- make our positions known to governments on any matter grams include the Canadian Industry nance principles." which affect our employees, stakeholders, customers or Program for Energy Conservation (CIPEC) and the communities associated with our operations. While Champions in Action Initiative of the the primary responsibility for the protection of human Canadian Voluntary Challenge and Registry rights lies with governments and international organiza- (VCR). tions, where it is within our power to do so, we will seek The company is a charter member of the US to promote the observance of human rights in the coun- Environmental Protection Agency's (EPA) tries where we operate. We support the principles of the Climate Leaders Program and Voluntary UDHR." Aluminum Industrial Partnership. The company is a participant in the GMI, and the MMSD The company has a voluntary GHG reduction project. agreement with the Government of Quebec The company is a participant in the Business in the and Aluminum Association of Canada. Environment (BiE) Index of Corporate Environmental Engagement. 412 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 413 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "An overseas corporation must: The company is a member of the UN Global Compact. Adheres to the principles of the Comply with minimum international The company's annual HSEC reporting uses benchmarks World Business Council for labour standards." tied to Global Reporting Initiative (GRI) standards. Sustainable Development "Goods or services must satisfy The company's HSEC Management Standards reference (WBCSD). required standards for consumer the Australian Minerals Industry's Code for Environmental health and safety for those goods or Management. services in Australia and in any coun- "We have made a policy commitment to support the funda- try in which it undertakes activities." mental human rights of employees, contractors and the communities in which we operate. Our approach is consis- tent with principles set out in the UN UDHR. We have also set ourselves a target of "no transgressions within the group's activities of the principles embodied in the UDHR'." The company is working to "[p]rovide a risk based HSEC management system framework, consistent with the BHP Billiton Enterprise Wide Risk Management Policy and with ISO 14001, OHSAS 18001, SA8000 and other internationally recognised standards, that support the implementation of the Charter and the HSEC Policy across BHP Billiton." S O C I O - E C O N O M I C I S S U E S 413 CRS_Annex F 3/3/04 12:17 Page 414 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Artisinal and Small- Scale Mining (Continued) Voluntary Initiatives "Freeport, its affiliates and employ- "In May 2003, GRI and ICMM signed a Memorandum of (Continued) ees are dedicated to the promotion Understanding to develop jointly a mining and metals sector of the rule of law and protection of supplement. The objective is to initiate a joint ICMM/GRI human rights at all operational process to develop a pilot version of a GRI Mining and Metals sites. The company and its affili- Sector Supplement. This, together with the GRI 2002 ates will adhere to the principles of Sustainability Reporting Guidelines, will provide relevant indi- the UDHR and other applicable cators to ICMM members for reporting on their performance international standards of human against ICMM sustainable development principles and GRI rights and all laws of the host guidelines. Reporting will be required for ICMM corporate country wherever the company members." operates." "ICMM members who have agreed to measure corporate per- The company adheres to the formance against ICMM principles include: Alcoa, Anglo "Voluntary Principles on Security American plc, AngloGold Ltd., BHP Billiton, Freeport- and Human Rights (Voluntary McMoRan Copper & Gold, Inc., Mitsubishi Materials Principles)--developed by govern- Corporation, Newmont Mining Corporation, Nippon Mining & ments of the UK and US, compa- Metals Co., Ltd., Noranda Inc., Pasminco Ltd., Placer Dome nies in extractive and energy Inc., Rio Tinto plc, Sumitomo Metal Mining Co. Ltd., Umicore, sectors, and NGOs." and WMC Resources Ltd." "ICMM will partner with United Nations Conference on Trade and Development (UNCTAD), United Nations Environment Programme (UNEP), and Department for International Development (DFID) to develop a good practice web site that will support ICMM's principles of sustainable development." 414 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 415 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) MPI holds that "Codes of Conduct and training work- shops should also include small-scale miners associ- ated with the company." "Companies should recognise the legitimate role and rights of small-scale miners and not seek to obtain minerals leases that involve their dispossession. Where appropriate companies should negotiate agree- ments with small-scale miners for compensation, where such miners are prepared to relinquish their land. Where the activities of large companies adversely affect small-scale miners appropriate com- pensation should be paid." MPI holds that "[c]ompanies should be bound by the jurisdiction of the territory in which they have their headquarters, regardless of where they are operating." "Companies should comply with local and international standards where these are higher than in Australia." Companies should abide by all relevant international treaties and codes such as mentioned in this docu- ment [including]: UDHR International Covenant on Civil and Political Rights International Covenant on Economic, Social and Cultural Rights Convention on the Elimination of all forms of Racial Discrimination Convention Against Torture and other Cruel, Degrading Treatment or Punishment Convention on the Rights of the Child OECD Declarations regarding International Investment and Multilateral Enterprises and Tripartite Declaration of Principles of the ILO Convention on the Elimination of all forms of Discrimination Against Women S O C I O - E C O N O M I C I S S U E S 415 CRS_Annex F 3/3/04 12:17 Page 416 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Artisinal and Small- Scale Mining (Continued) Voluntary Initiatives Participated in and sup- The company is a participant in the GMI, and the The company is a member of the (Continued) ported the process of devel- MMSD project. UN Global Compact. oping the Voluntary The company also participates in Canada's VCR Principles. of GHG emissions. 416 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 417 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The company is a member of the UN Global Compact. The company is a participant in the GMI, and the MMSD project. Transparency International (Canada Chapter, PNG Chapter). S O C I O - E C O N O M I C I S S U E S 417 CRS_Annex F 3/3/04 12:17 Page 418 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Artisinal and Small- Scale Mining (Continued) Voluntary Initiatives The company states that it supports the following "Teck Cominco is an active par- (Continued) international accords: ticipant in several initiatives: Australian Minerals Industry Code for (1) The Prospectors and Environmental Management; Developers Association of global Sullivan Principles of Social Canada electronic manual of Responsibility; exploration best practices International Chamber of Commerce Business for environmental perfor- Charter for Sustainable Development; mance ICMM Sustainable Development Framework; (2) MAC's Tailings Management ILO Convention 169: Concerning Indigenous and process Tribal Peoples in Independent Countries; (3) MAC's Towards Sustainable ILO Declaration on Fundamental Principles and Mining initiative Rights at Work; (4) The International Zinc OECD Convention on Bribery and Corruption; Association's Sustainable OECD Guidelines for Multinational Enterprises; Development Action Plan." UN UDHR; Dow Jones Sustainability Index. UN Global Compact; The company participates in US/UK Voluntary Principles; Canada's VCR of GHG emis- World Economic Forum Global Corporate sions. Citizenship Statement. 418 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 419 World Coal Union Cement Corporation WMC Resources Institute International Standards World Bank Consultative Group for Artisinal and Small Scale Mining The company states that it is a The company is a participant in the GMI, and the member of the UN Global MMSD project and the Greenhouse Gas Challenge. Compact and expresses support The company states that it adheres to the for the UDHR. Principles of the WBCSD, the ICMM, Australian The company states that it will Minerals Industry Code for Environmental "[c]omply with law and regula- Management; the GRI's Sustainability Reporting tions applicable to our products Guidelines, and the World Economic Forum's and operations, including the Global Corporate Citizenship Statement on Corporate requirements, the Corporate Social Responsibility. cement industry initiatives and Dow Jones Sustainability Index (w/ Rio Tinto and other requirements the company BHP Billiton). subscribes to." S O C I O - E C O N O M I C I S S U E S 419 CRS_Annex F 3/3/04 12:17 Page 420 Alcan, Inc. Alcoa, Inc. Anglo American p.l.c. Third Party The company states that its Code is not just "It is our goal to provide existing and potential sup- "We will promote the application of our prin- Applicability for employees. "All consultants and suppliers pliers around the world with online tools for doing ciples by those with whom we do business. are equally expected to adhere to [the com- business with Alcoa more efficiently and at lower Their willingness to accept these principles pany's] Code in their dealings with or on cost." will be an important factor in our decisions behalf of company. We must ensure that they "Alcoa is committed to conducting its business in a to enter into and remain in such relation- are aware of the contents of this Code, either manner that reflects our values and principles. ships." by providing them with a copy or by referring Each supplier is expected to perform in a manner The company states that it requires "the them to the dedicated page on Alcan's Web reflective of these values and to assure compli- compliance of supplier companies with our site. Although Alcan may not be able to ance in all contracting, subcontracting or other environmental policy in response to require adherence to the Code in every joint relationships." Business in the Environment FTSE Survey." venture and related company in which it par- "By creating strong business relationships we will ticipates, the principles in the Code are uni- establish a supply chain that supports the overall versal and so we should encourage its use in success of Alcoa, our customers, and suppliers." such organizations." The company directs its employees to add a clause to contracts with third parties such as "[t]he contractor acknowledges receipt of a copy of Alcan's Worldwide Code of Employee and Business Conduct and agrees to act in accordance with it in all dealings with and on behalf of Alcan." "We must choose suppliers fairly, except insofar as specific national government pol- icy or legal requirements dictate." "[Our] facilities...purchase extensively from local suppliers." 420 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 421 Australian Parliament Barrick Gold Corporation BHP Billiton Limited CEMEX, S.A. de C.V. "Consultants, contractors and partners working with or for BHP Billiton should be informed of relevant policies and standards and of the requirement that they act in accordance with them. [The company's corruption policy] applies to agents and third parties who are employed by the Company to represent its interests. Wherever we operate, we will: [c]ommunicate with, and engage employees, contractors, business partners, suppliers, cus- tomers, visitors and communities to share responsibility for meeting the requirements of this policy." "All our employees and contractors are bound by the requirements of [the corruption] policy. We also encourage our business partners, sup- pliers, customers and visitors to uphold the spirit of this policy while on our sites and in their dealings with us." "We are successful in creating value when...our customers and suppliers are bene- fiting from our business relationships." "Contractors who want to work with us will have to meet our standards (referencing envi- ronmental standards including ISO)." "Consideration is given to creating business opportunities for local suppliers and contrac- tors, and the means to full the requirements of...HSEC Management Standards." S O C I O - E C O N O M I C I S S U E S 421 CRS_Annex F 3/3/04 12:17 Page 422 European Association of Mining Industries European Freeport-McMoRan International Council on (Euromines) Commission Copper & Gold Inc. Mining & Metals (ICMM) Third Party "[The company's Ethics and Business ICMM holds that companies should: Applicability Conduct Policy] prohibits employees from "encourage customers, business partners (Continued) seeking or accepting any payments, free, and suppliers of goods and services to services, or gratuities (irrespective of size adopt principles and practices that are or amount) outside the normal course of comparable to our own; such individual's business duties from any provide sustainable development training other person, company or organization that to ensure adequate competency at all lev- does or seeks to do business with the els among our own employees and those Company. Gifts of cash or cash equivalents of contractors." of any amount are strictly prohibited. The receipt of common courtesies, sales pro- motion items of small value, modest gifts, occasional meals and reasonable enter- tainment appropriate to a business relation- ship and associated with business discussions are regarded as not inconsis- tent with [Company policy]." "With respect to its Indonesian operations, the company is committed to purchasing local goods and services and lending assis- tance to developing and establishing local business enterprises for the provision of supplies and services to the operations." 422 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 423 Mineral Policy Institute (MPI)-- Lepanto Consolidated Principles for Conduct of Company Minerals Council Mining Association Mining Company Operations within the Minerals Industry of Australia (MCA) of Canada (MAC) MPI holds that "[a]ll mining companies should take steps to ensure that suppliers, partners or contractors do not infringe human rights princi- ples. This relates particularly to issues such as labour and discrimination standards and the hir- ing of security contractors." "Companies involved in the mining industry, including banks, insurance companies, invest- ment funds, superannuation funds should estab- lish ethical guidelines which preclude investing, insuring or lending to companies which are not prepared to abide by acceptable codes of con- duct. Such codes should be in line with commu- nity standards and endorsed by community groups." "Codes of conduct need to cover the activities of contractors and suppliers." S O C I O - E C O N O M I C I S S U E S 423 CRS_Annex F 3/3/04 12:17 Page 424 National Mining Newmont Mining Association (NMA) Corporation Noranda Inc. Norsk Hydro ASA Third Party NMA states that its "[We] give preference to business partners who Applicability business practices conduct their business in accordance with ethi- (Continued) include "[c]ontributing cal standards consistent with our own." to national, regional and "Noranda operations [review] the safety policies local economic well- of outside contractors to ensure that anyone who being and security sets foot on our property rigorously follows our through creation of safety procedures." employment opportuni- The company states that it selects "our suppliers ties, wage payments, objectively, based on the long-term interests of purchase of goods and Noranda." materials and payment of fair and competitive taxes and usage fees." 424 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 425 Pasminco Limited Phelps Dodge Corporation Philex Gold Inc. Placer Dome Inc. The Employers Confederation of the "Employees are required to select and deal with sup- Philippines and the ILO awarded pliers, customers and others doing or seeking to do the company a "Child-Friendly Firm business with Placer Dome in a completely impartial Award" and upgraded the company manner and be perceived by others to be acting in an to a 3-star rating "for the com- impartial manner, without favour or preference based pany's efforts in taking concrete upon any considerations other than the best interests steps with its contractors and sup- of Placer Dome." pliers to similarly adopt the princi- ples embodied in the program." S O C I O - E C O N O M I C I S S U E S 425 CRS_Annex F 3/3/04 12:17 Page 426 Silangan Mindanao Transparency International and Social Exploration Accountability International, Business Rio Tinto Group Company Teck Cominco Limited Principles for Countering Bribery Third Party "Operations are justified in insisting that business The company states that it will "The enterprise should apply its Applicability partners respect the rights of their employees too. "[s]upport local communities [Programme for Countering Bribery] (Continued) We need to make our contractors and suppliers and their development by seek- in its dealings with subsidiaries, very aware of the standards... which we expect ing locally-sourced goods and joint venture partners, agents, con- from them. In cases of doubt, we need to monitor services and employing local tractors and other third parties with their employment practices through surveys and people." whom it has business relation- site visits. In the case of child labor, operations ships." may opt for a strategy of constructive engagement "The enterprise should conduct with offending suppliers, rather than simply termi- due diligence before entering into a nating contracts with them. In developing coun- joint venture." tries, children laid off from jobs can end up in a "The enterprise should ensure that worse situation." subsidiaries and joint ventures over "We only make payments for legitimate business which it maintains effective control services and at a rate that reflects their market adopt its Programme. Where an value." enterprise does not have effective "We work with business partners, representative control it should make known its agents and intermediaries after making them Programme and use its best efforts aware of RioTinto's policy and being satisfied that to monitor that the conduct of such they will not make unauthorized payments indi- subsidiaries and joint ventures is rectly on the Group's behalf." consistent with the Business "We develop Group wide standards and build sys- Principles." tems to identify, assess, and management environ- "The enterprise should undertake mental risk......We also engage with host due diligence in evaluating major communities, governments, customers, suppliers prospective contractors and suppli- and others to the same end." ers to ensure that they have effec- "All businesses require core labour standards of tive anti-bribery policies." main contractors." "The enterprise should make "Business enterprise and small scale community known its anti-bribery policies to based businesses can also provide opportunities contractors and suppliers. It should for community people to learn new technical skills monitor the conduct of major con- along with administrative, retail or commercial tractors and suppliers and should management skills. Community members who have a right of termination in the receive such training and enterprise assistance event that they pay bribes." will continue to benefit from these skills long after our mining operations have closed." 426 M I N I N G S E C T O R CRS_Annex F 3/3/04 12:17 Page 427 World Coal Union Cement Corporation WMC Resources Institute International Standards "We offer competitive and inno- The company's Code of Conduct applies to con- UN Norms: "Each transnational corporation or other busi- vative products and services tractors. ness enterprise shall apply and incorporate these Norms that meet the needs of our "Since 1998, businesses tendering for contracts in their contracts or other arrangements and dealings clients, and expect our suppliers with WMC are required, as part of their proposal or with contractors, subcontractors, suppliers, licensees, to do likewise." tender submission, to declare their intention to distributors, or natural or other legal persons that enter "We seek to engage in sustain- develop and implement a Local into any agreement with the transnational corporation or able relationships with cus- Community/Indigenous People plan incorporating business enterprise in order to ensure respect for and tomers and suppliers that employment, training and business opportunities." implementation of the Norms." adhere to the principles of the "We identify and facilitate opportunities for UN Global Compact and the employment, training and business relationships UDHR." directly and through our contractors and suppliers." S O C I O - E C O N O M I C I S S U E S 427 CRS_Annex F 3/3/04 12:17 Page 428 Endnotes i Anglo American's Community Engagement Guidelines state that it will support: promote the integration of mine closure into planning and management of all phases of mine operations; "close interaction with local communities through consultation and the provision of make adequate provision for the costs of mine closure; regular and relevant information on developments which may impact on them; work with government and other stakeholders to address issues relating to aban- a commitment to dialogue; doned mine sites." making a contribution to the economic and social development of the community; engaging with local community members to determine priorities for community pro- x The reader should note that the full text of the company's code or policy on this particular jects which an operation may support; issues has not been stated in full. This is due to space restrictions that a project of this kind respect for and sensitivity to the needs and rights of indigenous or historically disad- dictates. The reader may contact the company directly for any clarification. vantaged people; xi The reader should note that the full text of the company's code or policy on this particular a commitment to minimizing adverse social or environmental impacts." issues has not been stated in full. This is due to space restrictions that a project of this kind ii The reader should note that the full text of the company's code or policy on this particular dictates. The reader may contact the company directly for any clarification. issues has not been stated in full. This is due to space restrictions that a project of this kind xii Develop mutual understanding and respect by: dictates. The reader may contact the company directly for any clarification. building relationships with indigenous communities and organisations; iii The objective of the EITI is to increase transparency over payments and revenues in the educating Pasminco personnel in an awareness of indigenous culture and values; extractives sector in countries heavily dependent on these resources. Participating govern- explaining the benefits of the mining industry in general and Pasminco in particular ments and companies commit to providing concrete, detailed, standardized information to the relevant indigenous communities. regarding all form of payments between multinational mining corporations, national mining xiii"This approach includes "assessing the cultural impact of any program prior to com- companies, and host country governments. The draft EITI principles are available at mencement, with a commitment to minimise any effect; and the provision of opportunities for http://www.dfid.gov.uk/News/News/files/eiti_draft_report_statement.htm. employment, indigenous business and assistance to local indigenous communities." iv The reader should note that the full text of the company's code or policy on this particular xiv These facilitating payments may only be made where all of the following conditions are issues has not been stated in full. This is due to space restrictions that a project of this kind met: (1) the function or service required is clearly necessary to Placer Dome's essential busi- dictates. The reader may contact the company directly for any clarification. ness needs; (2) there is no reasonable alternative to making the payment; (3) the facilitating v Contributions to the partnership fund reached $18.3 million in 2002, and the total contribu- payment is not being made for corrupt motive (i.e., to induce the official to misuse his or her tions to the fund are nearly US $96 million since inception, including Rio Tinto plc's share as official position); (4) the facilitating payment cannot reasonably be expected to expose either our joint venture partner. Placer Dome or its employees to prosecution; (5) approval of the payment has been obtained vi The trust fund is in addition to other agreements and commitments between PT Freeport from senior management of the local office or, in its absence, senior management in the Indonesia and the local communities, including the Freeport Partnership Fund for Community country concerned; (6) the amount is consistent with what is customarily paid in such cir- Development and existing land use recognition programs. cumstances; and (7) the payment is recorded and clearly identified in the accounting records, vii The reader should note that the full text of the company's code or policy on this particular and is correctly treated for taxation purposes." issues has not been stated in full. This is due to space restrictions that a project of this kind xv The reader should note that the full text of the company's code or policy on this particular dictates. The reader may contact the company directly for any clarification. issues has not been stated in full. This is due to space restrictions that a project of this kind viiiThe reader should note that the full text of the company's code or policy on this particular dictates. The reader may contact the company directly for any clarification. issues has not been stated in full. This is due to space restrictions that a project of this kind xvi Corporate owner Holcim CSR principle on Community Involvement. dictates. The reader may contact the company directly for any clarification. xvii Corporate owner Holcim CSR principle on Occupational Health and safety. ix "In order to achieve this objective the MCA will encourage the Australian minerals industry to: xviiiThe reader should note that the full text of the company's code or policy on this particu- recognize that effective stakeholder involvement is essential for successful planning lar issues has not been stated in full. This is due to space restrictions that a project of this kind and implementation of mine closure; dictates. The reader may contact the company directly for any clarification. contribute to focused and relevant research into strategic issues of significance to mine closure; 428 M I N I N G S E C T O R