Annual Report 2007 in PDF - Cairn Energy PLC

activities in all operated blocks. as such,
there are significant cr challenges to be
addressed. these range from health and
safety issues, due to climatic extremes,
to meeting the expectations of local
people through to the potential
environmental impact. in close
partnership with the greenlandic
authorities, rigorous stakeholder
consultation and cr management
planning is already underway to
minimise the risks involved.
Our approach to managing Cr
cr has long been an essential part of
the way we do business. cairn has an
integrated internal control and assurance
framework in place that is overseen by
the board. this is described in more
detail in the corporate governance
statement on pages 40 to 49.
while ultimate responsibility for cr lies
with the board, day-to-day responsibility
and accountability has been delegated
to specific executive directors who are
supported by group functional
managers with in-depth expertise in
each of the areas covered by cr.
the board is provided with regular
updates on cr matters and
performance. a group cr committee,
comprising both executive directors,
refer to page 34 and group functional
managers, has also been in place since
2003 and meets regularly to inform the
board and management on strategic
direction, oversight and setting policies
on cr matters within the group.
the potential impact of cr risks and the
progress of our cr programmes are also
reviewed on a regular basis by the group
cr committee.
cairn india has an integrated internal
control and assurance framework in
place that is overseen by the cairn india
board. the cairn india board includes
three nominee directors from cairn.
the cairn india board is provided with
regular updates on cr matters and
performance through the cairn india
corporate advisory board (cab).
Cr policies and Guiding principles
we have had group health, safety and
environment (hse), security and csr
policies in place for many years. our
group cr guiding principles describe
our fundamental values, identify the
international standards we seek to apply
in our operations and explain our
approach to managing all aspects of
csr in our business activities.
risk management
business risks, including cr risks, are
managed through implementation
of our risk management strategy.
the risk management organisation
and processes have been in place
throughout 2007 and have regularly and
systematically identified, analysed,
assessed and, working with those
responsible for specific activities, agreed
plans to mitigate business risks faced at
cairn india, capricorn and group levels.
see also the risk factors section on
pages 36 to 39.
managing stakeholder expectations
our success has only been possible
through building effective external
relationships and partnerships that can
drive the business forward. working with
national and state governments and our
jv partners helps us develop a better
understanding of the regulatory
environment in our areas of operation
and, more importantly, has laid the
foundation for strong relationships.
it is vital in building these relationships
that we also understand the needs and
aspirations of the people living in the
vicinity of our operations, appreciate
issues raised by the relevant authorities
and are able to talk and listen to other
concerned parties in order to both
address their concerns and create value
for our shareholders.
a group ‘public consultation and
disclosure plan’ (pcdp) is in place
which provides a framework for
developing stakeholder engagement
plans for informing and consulting
with those peoples affected by our
investment projects.
CAIRN ENERGY PLC ANNUAL REPORT 2007 25