Managing risks in our value chain
Risk management is an integrated part of all our business processes. For instance, each investment decision is managed through our capital value process which requires each business case to be reviewed by relevant competent specialists and leaders.
We initiate country risk assessments when we first consider undertaking investment in a particular country, developing robust knowledge and understanding of local conditions and business culture. Such assessment continues throughout the life-cycle of our activities there. It enables us to identify, understand, manage and monitor our exposure to significant risk elements in a particular country and for specific business opportunities.
To manage risks in our day to day activities, we apply our Compliance and Leadership Model to ensure safe, consistent and high quality deliveries across the value chain. More information can be found in the Equinor Book.
We take our stakeholder’s perspectives into consideration when assessing and managing risks. An open dialogue with potentially affected communities and other interest groups and a holistic and balanced view are key elements in our risk management process. Our values inform the way we manage risks to avoid incidents and create long term value for Equinor, our shareholders and society at large.
Relevant health, safety, security and security risks, and environmental and social risk factors are identified at each decision point in our business processes, from early phase business opportunity identification to drilling wells and producing hydrocarbons, to abandonment and removal of facilities.
We use quantitative and qualitative risk and impact analyses to obtain a balanced picture of probability and consequences of incidents and for planned activities, to assess critical functions and defects, and as a basis for design and improvements. We utilize multi-discipline expertise to obtain optimal solutions that respond to the diverse challenges and opportunities. Necessary measures to manage risks and impacts are implemented. The outcomes of these measures and relevant changes that could influence the risk or impact in the business context are monitored. Such information is then fed back to guide risk reassessment and required modifications to management measures.
Integrated environmental and social impact management
This process helps us to identify the source and nature of potentially adverse and beneficial environmental, climate, social and economic impacts for Equinor and our stakeholders. Based on this, we develop plans to manage potential adverse impacts and benefits. It is one of the company's main tools for informing sustainable performance.
For Equinor-operated activities, our requirements for impact management are based on laws and regulations set out in the countries we operate and international good practice, such as the International Finance Corporation’s Performance Standards on Environmental and Social Sustainability and the International Standard Organization’s (ISO) Standard 14001 for environmental management systems for our operations., We also endeavour to promote Statoil's principles for integrated impact management in joint ventures or partner-operated assets.
Human rights due diligence
Human rights due diligence is integrated in the company's general systems for assessing and managing risks and impacts.
In countries or contexts in which exposure to human rights breaches are particularly significant, dedicated human rights assessments may be carried out. Human rights are addressed as a part of our standard integrity due diligence (IDD) research of third parties with whom we may enter into a business relationship.
Our standard contracts require adherence to national laws and regulations, and, where necessary, all efforts are made to include specific provisions relating to human rights in contracts with partners and suppliers.