Tullow Oil plc 2011/2012 Corporate Responsibility Report - The Group

Area for improvementTullow’s contribution to development, creating sharedprosperity, and our ability to listen to and respond tocommunity concerns.Actions to dateCommunity engagements have continued to highlight theimportance of managing Tullow’s social risks as an inclusivepart of operational project design and delivery. Topics raised,among others, include land access and acquisition,compensation, resettlement, impact on traditional livelihoodsand cultural heritage issues. To manage these risks moreeffectively as the business grows, we are developing newsystems, standards and processes for social impactmanagement, including an improved approach to ESIAs, moreextensive grassroots stakeholder engagement programmes andmore targeted social investment.In some countries where our level of local content activity isactually high, we received a low rating on local contentcontribution. Since then we have focused on improving theeffectiveness of our communication and engagement through thelaunch of an online supplier centre. In Ghana our local contentteam now produces a newsletter for suppliers and has increasedits participation in external industry events sponsored by Tullow.Our Ugandan team has run a public information programmeabout Tullow’s supply chain and local supplier developmentprogramme, and continues to run workshops for suppliers.Area for improvementProvision of accurate information on our activities and listeningand responding to stakeholder requests.Actions to dateIn Uganda we have begun to address this in several ways,including work to develop a centralised social information systemfor stakeholder engagement, baseline data management andland issues. This is complemented by a programme of activitiesaimed at more effective communication with parliamentarians,two new community information centres and additional‘introduction to oil and gas’ courses. Dedicated stakeholdersessions have also been held to provide updates on thecompany’s activities in the Albertine basin.Area for improvementTullow’s approach to transparency, particularly in relation topayments to host governments.Actions to dateThe survey was taken before we had announced our decision tobecome a corporate supporter of EITI and before we hadpublished our Ghana Petroleum Agreements online. Feedbackon both initiatives has been positive. We were also asked to bemore transparent about our hiring and contracting practices. Inaddition to specific outreach from the local content teamsoutlined above, our new Group Localisation Manager engagesactively with different groups in-country and abroad to identifyprospective skilled employees who are nationals of countries inwhich we operate.More informationPageStakeholder engagementperformance 51Local content 74About this reportThis report covers Tullow’s corporate responsibilityperformance for 2011, plus significant events anddevelopments occurring in the first half of 2012. Our goalin this report is to provide an overview of our operationsand how corporate responsibility issues are tied to ourcore business, while discussing in more detail relateddevelopments and major events that occurred during thereporting period. We also prioritise the topics of current andlong-term strategic importance to Tullow, along with thetopics identified by our stakeholders as being of mostsignificance to them. A full basis of reporting is availableonline at www.tullowoil.com/crr2011/borWho this report is forEvery year, report contributors from across the businessidentify the primary audiences they wish to reach through theCorporate Responsibility (CR) report. The output of this year’sexercise has identified our key audiences as governments andregulators, shareholders (particularly Socially ResponsibleInvestors), NGOs and Tullow’s supply chain. Local communitiesform a very significant part of our engagement effort, and whiletheir feedback will feature in this report, core outreach to thisstakeholder group is through channels such as CommunityLiaison Officers, town hall meetings and radio programmes.Sources reviewed in determining the structure and contentof this report included: Direct feedback and input from our key internal andexternal stakeholder engagement initiatives Input from our operations highlighting pivotal issues Tullow policies, guidelines and risk framework Peer group reporting Internal and external feedback on previous reporting External requests for information from CR benchmarkingand accreditation organisations GRI G3.1 guidelines and the Oil & Gas Sector SupplementKey topics included in this year’s report are: (see page 20for details) Bribery and corruption and transparency of payments(page 58) Opportunities for local people and local businessesto enter the supply chain, including employmentopportunities with Tullow (pages 68-77) Providing transparent, accurate information about ouroperations (page 60) New country entry, operating in sensitive areas andemissions reduction targets (pages 62-67) Plans to develop a strong social performance systemand processes across Tullow (pages 19 and 36]2STAKEHOLDER PRIORITIES19www.tullowoil.com