Integrating Biodiversity Conservation into Oil and Gas ... - EBI

among the public and positive media coverage.
Conversely, accumulated problems at project sites and
publicity about conflicts with communities or NGOs
can negatively affect a company’s image, leading to
a reputation as an irresponsible operator. Citizens’
campaigns, lawsuits and other negative publicity may
affect the viability of other projects. With increased
access to global information technology, a community
near a new or proposed project may cite poor
performance elsewhere as a reason for opposing the new
project.
Boycotts, lawsuits or other negative publicity may
also have an impact on a company’s market value.
For example, in 1995, Shell’s plans to decommission
its Brent Spar oil storage buoy by sinking it in the
North Atlantic Ocean met with severe resistance
from Greenpeace, which subsequently launched an
international campaign against the company. Despite
extensive research that indicated that sinking the
buoy was the most ecologically sound disposal method
available, a boycott led to a temporary decrease in Shell’s
sales in some European countries.
2.3 REPUTATION AFFECTS ACCESS TO
BUSINESS RESOURCES
A company’s track record for performance on
biodiversity – and other social and environmental issues
– can in turn affect its global competitiveness, in terms
of access to key business resources, including land, oil
and gas resources, capital and labor. A company with
a positive reputation for responsibly addressing and
preventing biodiversity impacts may become a company
of choice for governments, investors, business partners
and employees. In contrast, not managing biodiversity
properly can be a long-term constraint on business and
limit opportunities for future activity.
2.3.1 Access to land and potential oil and gas
resources
Companies need to maintain broad access to concessions
and potential oil and gas resources in order to capitalize
on the best investments and opportunities for future
business development. Being aware of the potential
biodiversity value of an area can save time and money
during the pre-bid process, as governments may
subsequently choose to limit access to resources in an
area identified as having high biodiversity value.
If a government does allow access to an area of high
biodiversity value, a company with proven experience
and success in using technology and practices to
minimize the impacts of its operations may be a more
attractive option as an operator. Once a project has
begun, good performance in relation to biodiversity will
make it more likely that future expansion plans or project
proposals in another part of the country will be approved.
“At ChevronTexaco, Protecting People and the
Environment is a core value. Our goal is to be
admired worldwide for excellence in this area.
We recognize biodiversity conservation is an
important environmental and social concern, and
we accept the challenge and opportunity to show
we can protect biodiversity while providing the
energy resources the world needs. As a company,
we are committed to demonstrate we can achieve
those goals through our performance and
partnerships.”
– David J. O’Reilly, CEO
ChevronTexaco
“Shell believes that customers, governments and
other stakeholders want to do business with
companies that are developing imaginative and
positive approaches to biodiversity – companies
that are part of the solution, not the problem.”
– Sir Philip Watts, Chairman
Royal Dutch/Shell Group
Furthermore, governments often respond to pressure
from citizens who do not approve of a company’s
activities, and a company with a poor performance record
or reputation may lose existing permits or find itself with
limited access to future concession areas.
Additionally, anticipating the role of biodiversity in
future regulations and decisions on access to land may
help a company be more competitive and avoid being
hurt by public policy changes that might affect future
competitiveness. Choosing not to address biodiversity in
18 The Energy & Biodiversity Initiative