Group of seven workers

Stakeholder engagement

Stakeholder engagement is about how we constructively manage our relationships with individuals, groups and organisations that affect, or are affected by, our business. It plays a critical part in managing our risks and identifying opportunities for our business, and is a core part of our Corporate Responsibility Management System (CRMS).

We integrate stakeholder engagement into our governance, organisational strategy and management. The results of stakeholder engagement are reviewed by senior management, and inform our risk assessments, and Environmental and Social Management Plans. We use a ‘Gated Project Management Process’, which we call the Cairn Project Delivery Process (PDP), to ensure that CR risks are assessed and managed throughout the life cycle of a project in a structured and consistent manner.

We have adopted an eight-step process for managing our stakeholder engagement, which is in line with our Business Principles, CSR (Corporate Social Responsibility) Policy, performance standards, and our Project Delivery Process.

The engagement process diagram

Our stakeholder engagement model follows the principles of ‘Materiality’, ‘Inclusivity’ and ‘Responsiveness’ as defined in the AA1000APS.

When identifying the issues most important to the business, we pay close attention to the concerns of stakeholders; engaging with them regularly to learn directly about their priorities.

For a new project or country entry we undertake a stakeholder identification exercise. We draw on local, corporate and external knowledge to do this. From this, we develop a Public Consultation and Disclosure Plan (PCDP), which is matched to stakeholder concerns, the materiality of issues and risks to the business. Engagement plans are therefore bespoke to each project. PCDPs are regularly updated as a project progresses. Issues and concerns raised by stakeholders through the year are taken into account in the development of our strategy, CR road maps of good practice and objectives. These are discussed in more detail in CR objectives and KPIs.

Stakeholders’ interests vary and Cairn uses a range of communication channels to satisfy them.

Our stakeholders and how we engage with them

Our stakeholders

Stakeholder Key interests Sample types of engagement
Investors
  • Strategy and performance
  • Good corporate governance
  • External reporting
  • Investor road shows
  • Response to enquiries
  • Operational updates
Governments and regulators
  • Legal compliance
  • Major accident prevention
  • Employment and revenue generation
  • External reporting
  • Permit applications
  • Compliance monitoring
  • Knowledge sharing
Business partners and peers
  • CR policies and approach
  • Industry reputation
  • External reporting
  • New business due diligence
  • Partner meetings
  • Membership of and participation in industry bodies
Contractors and suppliers
  • Long-term relationships
  • Opportunities for growth
  • Meeting CR standards and other business requirements
  • External reporting
  • Commercial relationships
  • Senior executive meetings
  • Training, briefings and supervision
Communities
  • Access to employment opportunities
  • Protection of environment and livelihoods
  • Community development
  • External reporting
  • Consultation meetings
  • Grievance mechanism
  • Social investment programmes
NGOs
  • Approach to CR issues
  • Working in frontier locations
  • Major accident prevention
  • External reporting
  • Meetings with local NGOs as part of Environmental and Social Impact Assessment (ESIA) consultations
  • Responses to written enquiries
Employees
  • Remuneration and benefits
  • Opportunity for development
  • Company strategy and culture
  • Safe and fair working environment
  • Performance and development reviews
  • Staff meetings
  • Executive Team coffee and chat sessions
  • Office Health, Safety and Environment Safety Committee
  • Intranet and other internal communications
  • ‘Lunch and Learn’ sessions

In 2015, we also engaged a representative from each of these stakeholder groups to review our CR materiality process and assessment to better understand their view on our key CR issues.

Participation in public policy development and lobbying

Cairn’s participation in public policy development and lobbying is usually carried out through relevant industry bodies such as the International Association of Oil & Gas Producers (IOGP) or regional industry groups such as Oil & Gas UK, the Greenland Oil Industry Association (GOIA), the Association of British Independent Oil Exploration Companies (BRINDEX), Irish Offshore Operators Association (IOOA) and the Norwegian Oil and Gas Association (OLF).

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