HOW MATERIALITY WAS DETERMINED
We engage with shareholders, regulators, our community including directly with Maori, staff, industry organisations and partners, and we monitor public issues.
Our board conducted a listening tour with larger shareholders during the year, we use a range of tools to make it easy for investors to contact us and we respond promptly.
The Company surveys staff to measure engagement and attitudes to key issues, including sustainability.
We consider feedback from industry groups, officials, business representatives at national and regional level, and community groups. We engage directly with mana whenua in areas where we are operate. We sign relationship agreements with community organisations and discuss key issues through those agreements. We participate in industry and business interactions with government and political leaders.
RESPONSE TO MATERIAL ISSUES
The top four material issues identified are: Transparency and open communication; Environment, climate and energy transition; Wellbeing of People; Commercial opportunities.
For this report we provide more detailed responses to the top four material issues:
- Transparency and open communication;
- Environment, climate and energy transition;
- Wellbeing of People;
- Commercial opportunities.
Our response to these top issues is below:
Transparency and Open Communication
- Inform and engage our community
- Comply with community expectations
- Be proactive about disclosing our activities
- Be part of the discussion about energy transition.
We are proud of our activities and how we go about them, and we invest in open dialogue and relationships.
We understand communities where we are active legitimately want to know what impacts our activities have, what steps we take to manage risk, and how the benefits will be felt. We formalise relationship agreements with locals communities where we operate. These agreements commit us to respectful engagement and to learning from each other. We engage directly and early with mana whenua and mana moana.
We report openly on all of our activities, both to investors and to the wider community, and we seek opportunities to keep the industry, investors and the public informed.
We participate in discussions about energy transition in business and industry forums, as well as directly with government and political parties at ministerial and officials levels.
We make submissions on relevant legislation and policy.
We are members of reputable national business representative groups such as Business New Zealand and Energy Resources Aotearoa. We pay for research and analysis on transition issues.
All of our advocacy is open and frank.
Environment, Climate and Energy Transition
- Be responsible about the corporate environmental footprint
- Do our bit to reduce emissions
- TCFDreporting See our TCFD report
In summary: We support carbon budgets and emissions pricing as the most efficient and effective tools to manage carbon emissions.
In our view, an economy-wide response to the global issue of climate is more effective than enterprise-level response, but we are responsible about our own carbon footprint, supporting initiatives such as recycling in our head office.
We report comprehensively on climate risks through our TCFD reporting.
The Company has reduced or offset our emissions from corporate travel and other office-related activities at our corporate HQ and we financially support carbon-reducing tree planting.
We do not report in Scope 3 emissions. The use of oil and gas we produce helps to solve humanity’s energy needs. In many cases, oil and gas will be the best available energy technology. We support efforts by users to offset their emissions from use, and by governments to reduce avoidable carbon emissions through efficient economic instruments.
We are committed to responsible management practices that minimise adverse environmental impacts from our activities, using soundly-based science as the basis for all our environmental decisions.
Excellence in environmental performance is essential to our business success. We comply with all applicable environmental laws and regulations and good practice industry standards.
We apply reasonable standards where regulatory legislative requirements and standards do not exist. We work to minimise pollution and the cumulative environmental impact of our activities at a local, regional and global level, and try to reduce waste and improve resource use. Our environmental management plans for all our activities identify, assess and manage environmental risks as low as is reasonably practical.
Wellbeing of People
- Health and Safety performance
- Opportunities for personal development
We make safe operating and the health of our workforce our top priority because well-being of people regularly features higher in internal materiality surveys than in feedback from outside.
Staff incentives are linked directly to corporate health and safety performance.
Health and safety reporting includes both our own sites, and non-operated sites where we have an interest, and our supplier code sets out requirements for companies that do business with us.
Performance is monitored daily and reported through to an HSE weekly meeting, as well as to weekly executive management meetings. The ORS committee reviews performance and policies and reports on performance to the board.
We have had no exposure to Covid-19.
Our diversity committee is focused on improving diversity in our workplace. We have attained a Rainbow Tick. Diversity initiatives are reported at all staff meetings, staff attitudes to diversity initiatives are surveyed, and we regularly engage in cultural activities that are meaningful to our staff.
We invest in the development of all our staff. Regular coaching and training opportunities are provided across the business.
- Returns to investors
- Returns to NZ Inc
- Community Investment
- Local economic development
Returns to investors are set out in the financial statements of our annual report, found in the investor section of our website.
Through our social investment we live our values as good partners, committed to enduring relationships with our neighbours and wider community. We make social investments that make a sustainable difference.
Examples of our contribution include funding for Dunedin’s curtain bank, that provides warmer housing for vulnerable low-income families. funding for scientific research, and planting trees in areas where community groups are restoring the landscape.
The best investment we can make in the community is economic activity. The upstream oil and gas sector contributes billions to Gross Domestic Product (GDP)in Australia and New Zealand. Governments in Australia and New Zealand collected billions in in royalties and income tax annually. Oil and gas workers earn twice the national average salary and create seven times the average value earned per year, money that is spent in local communities.
The Company adopted a policy on Capturing Local Economic Benefits in response to an earlier materiality survey.
The policy commits us to promoting local content and capturing local benefits. We commit to studying opportunities for the wider community to participate commercially in our projects, and to producing a local content plan for significant developments. We also believe our expertise in areas such as health & safety and international business processes can help local enterprise compete on a commercial basis.