We aim to make a positive contribution by delivering tangible benefits to our stakeholders. These include the governments that invite us to work in their country, the communities that give us our social licence to operate and the workforce whose expertise we rely on to create value. We distribute value through payments to employees, contractors and suppliers; through taxes and duties; and by promoting social and community development in our host countries.
Increasing standards and expectations
Our industry faces continued pressure on cost-efficiency in an environment where the oil price remains volatile. While our business remains focused on efficient capital allocation and operating costs in our projects, it is important that this does not compromise our commitment to working responsibly.
We recognise the ongoing need to improve our standards of operation. To maintain our ‘licence to operate’, we track and apply best practices in the way we do business. These directly influence our Corporate Responsibility Management System (CRMS).
Increasingly, providers of capital want to ensure that the highest Corporate Responsibility (CR) standards are adhered to. We continue to seek improvements in our CRMS to reflect changing standards and stakeholder expectations. Our CRMS is reviewed and revised annually to ensure it is up to date and addresses the latest risks to our business.
Cairn often seeks to engage in new investment opportunities and locations. Our CRMS requires us to understand the CR risks and determine whether we accept them with appropriate mitigation or reject them. Although some opportunities may be financially attractive, we may judge them to represent an unacceptable risk due to associated ethical, safety or environmental concerns.
Before starting a new venture, we undertake a due diligence process to ensure we have confidence in the partners involved and understand the CR risks associated with them and the locations where operations will take place.
Through our CRMS, we rigorously assess new venture opportunities, using a phased evaluation (see our Project Delivery Process) to assess risks in relation to the CRMS requirements and CR issues arising from the type of opportunity.