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Download the CR Report PDF (1.90MB) - Tullow Oil plc

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CSR Committee and programme<br />

The CSR Committee is responsible for managing all <strong>Tullow</strong>’s<br />

community sponsorship support programmes and considers any<br />

matters relating to social, charitable, community and educational<br />

issues, toge<strong>the</strong>r with CSR publications and CSR expenditure.<br />

touraid<br />

In 2006, <strong>Tullow</strong> sponsored a group<br />

of 20 boys from <strong>the</strong> Kyadondo Rugby<br />

Football Club in Uganda, through<br />

a new charity called touraid, which<br />

aims to give opportunities to young<br />

people from disadvantaged<br />

backgrounds <strong>the</strong> chance to come<br />

to <strong>the</strong> UK to play rugby. touraid hopes<br />

to establish sustainable links, through<br />

rugby, between schools and clubs in<br />

<strong>the</strong> UK and <strong>the</strong> disadvantaged areas<br />

of developing nations to provide<br />

educational, cultural, economic and<br />

social benefits. <strong>Tullow</strong>’s sponsorship<br />

helped <strong>the</strong> young rugby players spend<br />

six days in <strong>the</strong> UK enjoying a variety<br />

of activities, including training with<br />

leading teams, playing a number<br />

of fixtures and forming <strong>the</strong> Guard<br />

of Honour to <strong>the</strong> South African<br />

team when <strong>the</strong>y played England at<br />

Twickenham. The UK schools that<br />

hosted <strong>the</strong>se young Ugandans also<br />

raised money to support <strong>the</strong>ir ongoing<br />

education when <strong>the</strong>y returned home.<br />

Our CSR strategy aligns investment<br />

with key areas and countries for business<br />

development. In 2006, funding for social<br />

and community projects amounted to<br />

US$1.5 million, up 12% on <strong>the</strong> 2005<br />

level. Information on <strong>the</strong>se projects is<br />

contained in <strong>the</strong> case studies throughout<br />

this report. The 2007 budget for funding<br />

social and community-based projects<br />

is US$2.5 million, representing both<br />

commitments under licence agreements<br />

and discretionary funding.<br />

<strong>Tullow</strong> has developed a set of project<br />

funding criteria which concentrate on<br />

<strong>the</strong> support of children, education and,<br />

where appropriate, fulfilment of basic<br />

needs, such as clean water. Projects<br />

considered will be mainly long-term<br />

investments where <strong>the</strong>re is established<br />

production, an operated activity or a<br />

key country for development. One-off<br />

investment will also be considered in<br />

<strong>the</strong> context of <strong>Tullow</strong>’s business.<br />

Overall, <strong>Tullow</strong>’s objective is to make<br />

a tangible, positive difference and to<br />

foster and support longer-term<br />

development and self-sustaining<br />

enterprise in local communities.<br />

The responsibilities of <strong>the</strong> CSR Committee<br />

are to:<br />

• Develop and implement a framework<br />

for submission, assessment and<br />

approval of discretionary and mandatory<br />

community, social and educational<br />

expenditure undertaken by <strong>Tullow</strong><br />

Group-wide;<br />

• Consider and propose an annual<br />

budget for CSR activities to <strong>the</strong> Board<br />

for approval as part of <strong>the</strong> overall<br />

Group budgeting process;<br />

• Evolve and fur<strong>the</strong>r develop <strong>Tullow</strong>’s<br />

social and ethical policies as part of <strong>the</strong><br />

overall risk management framework of<br />

<strong>the</strong> business;<br />

• Prepare <strong>the</strong> CSR <strong>Report</strong> annually;<br />

• Review <strong>the</strong> internal CSR programme,<br />

ensuring co-ordination between internal<br />

and external activities and ensuring that<br />

<strong>the</strong> internal CSR function is adequately<br />

resourced and has appropriate standing<br />

within <strong>the</strong> Group; and<br />

• Consider o<strong>the</strong>r CSR matters as specified<br />

by <strong>the</strong> Board.<br />

In <strong>the</strong> 2005 CSR <strong>Report</strong> we<br />

documented <strong>the</strong> key Social, Ethical<br />

and Environmental (SEE) issues for<br />

<strong>Tullow</strong>. Feedback from shareholders<br />

requested that we enhance this<br />

information by including exactly<br />

how we address <strong>the</strong>se issues,<br />

highlighting <strong>the</strong> key aspects of<br />

<strong>the</strong> Group’s policy in each area<br />

and integrating all <strong>the</strong> elements<br />

of related information into one<br />

area of <strong>the</strong> report. We have done<br />

this on pages 10 and 11.<br />

8 <strong>Tullow</strong> <strong>Oil</strong> <strong>plc</strong> Corporate and Social Responsibility <strong>Report</strong> 2006

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