VOLUNTARY PRINCIPLES ON SECURITY AND …...Voluntary Principles on Security and Human Rights R e p o...

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A VOLUNTARY PRINCIPLES ON SECURITY AND HUMAN RIGHTS ANNUAL REPORT TO THE VOLUNTARY PRINCIPLES INITIATIVE 2017

Transcript of VOLUNTARY PRINCIPLES ON SECURITY AND …...Voluntary Principles on Security and Human Rights R e p o...

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V O L U N T A R Y P R I N C I P L E S O N S E C U R I T Y A N D H U M A N R I G H T S

A N N U A L R E P O R T T O T H E V O L U N T A R Y P R I N C I P L E S I N I T I A T I V E 2 0 1 7

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I N T R O D U C T I O N

As the largest Papua New Guinean company, Oil Search aims to take the lead in bringing business and society together to contribute to a stable operating environment. A stable and safe Papua New Guinea (PNG) is fundamental for the success of the Company’s operations over the long-term and strengthens our social licence to operate.

Our human rights approach considers the UN Guiding Principles for Business and Human Rights (UNGP) and the Voluntary Principles on Security and

Human Rights (VPSHR). The VPSHR are the only human rights principles developed specifically for extractive sector companies and are enacted through the Voluntary Principles Initiative (VPI). Oil Search became a corporate VPI participant in December 2016, an important and logical next step in our human rights journey.

In 2017, we developed a multi- year VPSHR Implementation Plan with clear actions to further strengthen our security and human rights processes. The Plan is in the early stages of

implementation. We are currently driving change by enhancing all procedures and processes related to security and human rights to ensure our activities are supported by appropriate, context-specific practices.

As of date of publication, all of Oil Search’s operated assets are in PNG, so PNG is the current focus of our VPSHR implementation and this Report, which aligns with the VPSHR Verification and Reporting Framework.

Respect for human rights and the desire to do no harm underpin Oil Search’s socially responsible approach to operations in our host countries and across

our supply chain. Our continued business success is supported by strong, mutually respectful relationships with host communities and a commitment

to social responsibility and sustainable development.

01 Introduction

02 Map of Papua New Guinea

04 Message from Oil Search’s Managing Director

06 Our Recent Human Rights Journey

09 Performance Summary

10 Human Rights and Security Approach

12 Human Rights and Security Governance

16 Promoting and Advancing VPI Implementation

17 Lessons Learned

18 VPSHR Verification and Reporting Framework

20 Acronyms

C O N T E N T S

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Gulf of Papua

Bismarck Sea

P A P U A N E W G U I N E A

PNG LNG PLANT SITE

OIL SEARCH SITE

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V o l u n t a r y P r i n c i p l e s o n S e c u r i t y a n d H u m a n R i g h t s R e p o r t 2 0 1 7

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P A P U A N E W G U I N E A

Coral Sea

Solomon Sea

Pacific Ocean

PNG is a developing country and the extractive industries sector is a key driver of its economy. Approximately 97% of land is owned by Indigenous communities, most people identify as tribal, and there are more than 800 distinct languages.

Security force violations, discrimination, sexual violence, lack of respect for land rights and unenforced labour standards are widespread in PNG. Regulation and legal procedures regarding security and human rights are not well established

and, if established, are inadequately enforced due to limited capacity, training and resources. These factors have resulted in the Verisk Maplecroft risk indices classifying security force violations as ‘high risk’ in PNG.

The PNG Government is taking measures to raise awareness on and address human rights issues by collaborating with international humanitarian organisations and ratifying the PNG-Australia Policing Partnership.

P N G ’ S H U M A N R I G H T S   L A N D S C A P E

A U S T R A L I A

Map of Papua N

ew G

uinea

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M e s s a g e f r o m O i l S e a r c h ’ s M a n a g i n g D i r e c t o r

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V o l u n t a r y P r i n c i p l e s o n S e c u r i t y a n d H u m a n R i g h t s R e p o r t 2 0 1 7

Maintaining a stable operating environment is always a strategic priority for Oil Search. We operate in remote and rural locations, where there are long-standing inter-tribal conflicts, perpetuated by complex customary practices and disadvantage. Changing social dynamics, the introduction of social media and a new generation of leaders has added to this complexity. Within this context, protecting our people and contractors, host communities and assets is paramount.

Our approach is to manage these risks in a way that puts relationships first, respects human rights and aligns with our Social Responsibility Policy. We have always done this well, thanks to our deep understanding of PNG, its people and customs, and of how our operations impact them. As with many of our goals, it is a journey that involves continuous improvement and evolution.

Security is an area where Oil Search encounters some of its most important human rights risks, prompting our decision to join as a corporate participant of the Voluntary Principles

Initiative (VPI) in late 2016 and our commitment to progressively adopt the Voluntary Principles on Security and Human Rights (VPSHR) in our corporate and operating practices. Joining the VPI has strengthened the framework for managing Oil Search’s security and human rights responsibilities and commitments, and allows us to build on the deep community relationships and robust practices that underpin our security management approach.

The Voluntary Principles are an industry-based, multi-stakeholder initiative; VPI members include our extractive industry peers, implementing NGOs and governments with a strong extractives sector. Membership gives us access to a constructive forum for sharing experiences and good practices, and for workshopping ideas with members who operate in similarly complex environments. As the name suggests, the VPI is based on principles, not compliance, and is voluntary, attracting organisations that are committed to continuous performance improvement and respecting human rights.

Since Oil Search was accepted as a participant by the VPI, we have actively engaged with it. This document, our first VPSHR Annual Report, provides an overview of how security-related human rights risks were addressed throughout 2017, with a focus on continuing to strengthen our practices and engagement with the VPI. With transparency and accountability in mind, we have used the VPSHR Verification and Reporting Framework and made this Report part of our annual social responsibility reporting suite, so it can provide a public record of our progress over time.

We encourage engagement around our commitment to the VPSHR; please send your feedback or questions to [email protected].

Message from

Oil Search’s M

anaging Director

M E S S A G E F R O M O I L S E A R C H ’ S M A N A G I N G D I R E C T O R

P E T E R B O T T E N

Next year marks Oil Search’s 90th anniversary in Papua New Guinea (PNG). I’m proud to say we have made a positive difference to the lives of Papua New Guineans,

not just through our substantial employment and socio-economic contributions, but by conducting business in a socially responsible manner.

Peter Botten MANAGING DIRECTOR

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O U R R E C E N T H U M A N R I G H T S J O U R N E Y

Became a signatory to the UN Global Compact (UNGC) and Global Compact Network Australia (GCNA)

Began benchmarking against the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability

Reviewed our practices against the UN Guiding Principles on Business and Human Rights (UNGP)

Chaired the GCNA Human Rights Leadership Group

Commenced human rights due diligence processes in accordance with the UNGP Framework

Captured Oil Search’s commitment to respecting human rights in our Social Responsibility Policy

Developed a multi-year Human Rights Plan to address identified improvement opportunities

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Board Health Safety and Sustainability Committee (HSSC) became responsible for overseeing our human rights performance

Began implementing the Human Rights Plan

Commenced integrating human rights aspects across relevant Company processes

Reviewed and refreshed our Social Responsibility Strategy

Revised our Code of Conduct to include human rights provisions

Accepted as a corporate participant in the Voluntary Principles Initiative (VPI) (December)

Added human rights incidents to our Incident Management System

Developed and began implementing a multi-year VPSHR Plan

Established a VPSHR Steering Committee to oversee VPSHR obligations

Signed a VPSHR-aligned Memorandum of Understanding (MoU) with the Royal PNG Constabulary (RPNGC)

Updated our PNG country human rights risk profile

Progressed development of a Responsible Supply Chain Strategy

Managing Director Peter Botten participated in the High Level Panel at the GCNA/Australian Human Rights Commission’s Australian Dialogue on Business & Human Rights

Commenced developing a stand-alone Human Rights Policy

Prepared first annual VPSHR Report (for 2018 publication)

Our H

uman R

ights Journey

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P e r f o r m a n c e S u m m a r y

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Performance Sum

mary

P E R F O R M A N C E S U M M A R Y

Oil Search’s activities in 2017 were focused on getting the VPSHR fundamentals in place to create a platform for ongoing success. 

With a structured approach to building on existing strong foundations, we made significant progress in the following areas:

� Established an internal, cross-functional VPSHR Steering Committee comprising three executives and six subject matter experts to ensure we fulfilled our obligations as a VPSHR participant.

� Signed a VPI-aligned MoU with the Royal PNG Constabulary.

� Updated our PNG country human rights risk profile.

� Promoted alignment with joint venture partners and peers by initiating and hosting a PNG Security Managers’ meeting to benchmark in-country peer security and human rights practices and share lessons learned.

� Developed and embedded VPSHR-related clauses in private security provider contracts.

� Continued to integrate human rights considerations into our systems, procedures and guidelines, including explicit recognition in our Code of Conduct and incident reporting process and system.

� Progressed development of a Responsible Supply Chain Strategy that addresses contractor screening and management in relation to human rights.

� Developed and adopted a procedure for the use of public and private security, which sets out our requirements when engaging public and private security forces.

� Commenced VPSHR training for private security personnel.

In 2018, we plan to:

� Develop and finalise a Corporate Human Rights Policy.

� Review and strengthen our grievance mechanisms.

� Continue to enhance security-and human-rights-related management reporting.

� Develop more comprehensive supplier human rights screening.

� Incorporate VPSHR-specific content into PNG site inductions for new employees and contractors.

� Conduct ongoing internal human rights training.

OPERATIONS IN OTHER COUNTRIES

In November 2017, Oil Search acquired interests in the Alaska North Slope in the United States. We will assume operatorship of these assets in 2018.

We continue to work with the Yemeni Government to complete the transaction that will see Oil Search fully exit Yemen. We are in the process of exiting Kurdistan and are working with the Kurdistan Regional Government on a relinquishment agreement.

Due to the lack of operational activity in these three areas in 2017, there is no VPSHR-related activity to report.

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H u m a n R i g h t s a n d S e c u r i t y A p p r o a c h

H U M A N R I G H T S A N D S E C U R I T Y A P P R O A C H

Oil Search’s presence has the potential to have a significant impact — both positive and negative — on the day-to-day lives of communities, so having the trust and support of local stakeholders is important for our success.

Given the general socio-political complexity of PNG, the stability of the local operating environment depends on how our employees and contractors interact and engage with local communities and governments and on how we contribute to inclusive sustainable development.

When unrest does occur within the community, it is usually the result of inter-tribal conflict, or related to issues between communities and the PNG Government regarding unfulfilled commitments or other issues not related to Oil Search performance or

our relationships with the community. We aim to minimise the potential for these types of conflicts by transparently reporting payments to the PNG Government, providing logistical support for its community engagement efforts and ensuring government representatives and agencies are fully informed of their obligations.

Open communication and being transparent about our activities, actions and intent is essential for building trust. This is particularly true for the way we approach security.

PNG is rated as high or extreme risk across several human rights indicators and our sites are in rural and remote locations. As such, our operations require consistent, sometimes significant, public and private security support.

Historically, we have experienced minimal interruptions to our operations from community unrest, demonstrating the enduring strength and quality of these relationships and the impact of our commitment to transparency.

STAKEHOLDER ENGAGEMENT

Our community relationships are a critical component of our security management.

We regularly engage with communities over how the Company’s operations may affect them and to ensure their land, culture, prosperity and rights are protected.

Oil Search Community Affairs team members are always PNG nationals, ensuring any issues are understood and responded to in a culturally

Stakeholder engagement, transparency and open communication are important elements of how we approach human rights and security within

the Company and our host communities.

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KEY STAKEHOLDERS HOW WE ENGAGE

PRIVATE SECURITY � Field security services provided by local landowner companies (Lancos).

� VPSHR training for Lanco security personnel.

� Daily toolbox and weekly coordination meetings.

PUBLIC SECURITY � Engaged under a VPI-aligned MoU.

� General induction training on arrival.

� Weekly local meetings.

� Quarterly provincial meetings.

� Review of incidents and follow up where required.

COMMUNITY � VLO network.

� Regular community visits focused on relationship-building and grievance management.

� Sustainable development implementation.

PEERS � VPSHR Plenary and Corporate Pillar meetings and calls.

� GCNA Human Rights Leadership Group participation.

� IPIECA social responsibility working groups and task forces.

� Security Managers’ meetings.

� Informal communication and intelligence sharing.

Hum

an Rights and Security A

pproach

1 2017 Dow Jones Sustainability Index

appropriate manner. The team is supported by Village Liaison Officers (VLOs), who are recruited from local communities to aid two-way communication around risks, concerns, needs and opportunities.

The Community Affairs and Security teams work closely together to share information and respond to concerns, always leading with a relationship-based approach.

In addition, the Company continually works with key stakeholders, including public and private security forces, to promote understanding, respect for and implementation of the Voluntary Principles (VPs).

In April 2017, Oil Search received a shareholder resolution from the Australasian Centre for Corporate Responsibility regarding human rights transparency. The resolution called for the Company to disclose our compliance with the United

Nations Guiding Principles on Business and Human Rights and the VPSHR, including our compliance methodology, and to make this VPSHR Report available publicly. As Oil Search’s transparency around these topics was already established and our future VPSHR reporting commitments were in place, the Oil Search Board did not support this resolution. It was defeated at the Company’s Annual Meeting, with more than 93% of proxy votes cast against it.

Our full response to shareholders regarding this resolution is available on the Oil Search website.

TRANSPARENCY

We demonstrate transparency and accountability through our reporting and communications. They are hallmarks of Oil Search’s socially responsible approach and we have been rated a global sector leader1 in transparency for several years.

We release information on key sustainability issues annually in the Oil Search Social Responsibility Report and promote the benefits of participating in the VPI on the Oil Search website. The Report content is reviewed by the senior management team and endorsed by the Board HSSC. Oil Search also makes an annual Communication of Progress to the UNGC and participates in a range of benchmarks, surveys and indices to help communicate and benchmark our social responsibility performance.

This document is our first public progress report using the VPSHR Verification and Reporting Framework. We will continue to report our year-on-year progress as part of our annual social responsibility reporting.

The annual VPSHR Report will be made available on the Oil Search website and will be referenced in the human rights section of our Social Responsibility Report.

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H u m a n R i g h t s a n d S e c u r i t y G o v e r n a n c e

The HSSC oversees human rights and security matters and our senior managers have a Key Performance Indicator (KPI) as part of their short term incentives relating to the multi-year VPSHR Implementation Plan.

In mid-2017, we established a cross-functional VPSHR Steering Committee chaired by the Executive General Manager of our PNG Business Unit. Members are Oil Search executives and senior subject matter experts in human rights, security, operations, social responsibility and community affairs. The Committee meets regularly to oversee and discuss progress in implementing the Company’s VPSHR Implementation Plan and to ensure we are adhering to the MoU with the RPNGC.

The Committee’s key responsibilities include:

� Overseeing the risk management of using public and private security forces.

� Reviewing the three-year and annual VPSHR Implementation Plans.

� Where appropriate, overseeing the management of our performance against the Plans.

� Monitoring RPNGC performance against the MoU.

� Ensuring appropriate visibility of security incidents related to human rights by monitoring, reviewing and investigating any security incidents with alleged or potential human rights breaches, and ensuring human rights commitments are upheld and the appropriate remedy has been put in place.

� Reviewing and endorsing the annual VPSHR Report and associated reporting (e.g. VPSHR Plenary presentations).

POLICIES, PROCEDURES AND GUIDELINES

Our approach to the VPSHR is guided by our Board approved Social Responsibility Policy and the Oil Search Code of Conduct. Our approach to security is addressed in our Health, Safety, Environment and Security (HSES) Policy.

In 2018, we plan to introduce a stand-alone Human Rights Policy that will further address our commitment to the VPSHR.

The Company’s use of security services is governed by a procedure for the use of public and private security, which we introduced in 2017 to formalise the specific requirements relating to these engagements. As a VPI participant, we are committed to responsible security management that aligns with our commitment — and that of our peers and joint venture partners— to respect human rights.

We are progressively introducing human rights considerations into relevant systems, procedures and guidelines. So far, these have included: risk management; environmental and social impact assessment; grievance management; stakeholder management; security management; contract and procurement management; and land access.

H U M A N R I G H T S A N D S E C U R I T Y G O V E R N A N C E

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We are also integrating the VPI requirements internally to promote a working environment that reduces Oil Search’s exposure to risks, and we continue to build relationships with business partners so we can share security and human rights concerns and best practice.

ENGAGEMENT WITH SECURITY FORCES

The Oil Search Security team comprises an in-country Security Manager with corporate and operational responsibilities who is supported by on-site security staff and field support managers. We contract most security personnel through private security companies owned by Lancos, which represent host communities. Our use of non-Lanco private security firms outside field areas is minimal. For example, in Port Moresby, they provide specialist support such as alarm monitoring and vehicle tracking services.

Oil Search is also supported by the national police force — the Royal PNG Constabulary (RPNGC). This relationship is governed by the Oil Search-RPNGC MoU. The MoU requires the RPNGC to:

� Act in a manner consistent with the VPSHR, Universal Declaration of Human Rights,

UN Code of Conduct for Law Enforcement Officials and the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials.

� Receive appropriate training on respect for human rights.

� Report, investigate and take appropriate action against allegations of human rights abuse.

In PNG, private security personnel engaged by Oil Search are unarmed. The public security personnel that provide support to our activities in environments with elevated security risk may be armed, depending on their standard operating procedures.

Oil Search’s procedure governing the use of public and private security sets out our requirements for these engagements and emphasises the reporting of allegations and incidents related to human rights.

We have begun integrating the VPs into all security contract arrangements to further align security companies with our commitment to the VPSHR and help them operate with respect for human rights. Relevant contract clauses will be included in all new security contracts and those undergoing renewal. This risk management approach is an important part of our Responsible Supply

Chain Strategy which is currently under development.

We have developed training materials consistent with VPSHR requirements to ensure all private security personnel are trained in, and familiar with, the provisions of the VPs. Training commenced in 2017 and will be ongoing. Our Stakeholder Engagement team is currently developing a human rights training programme to embed human rights awareness more broadly across the Company.

SECURITY RISK ASSESSMENT

Globally, the oil and gas sector is considered to be at risk of contributing to, or being linked to, adverse human rights impacts. In addition, PNG is classified as extreme or high risk for adverse human rights impacts2, with the most severe risks in the country identified as civil and political rights, labour violations, land rights and security force violations.

Any association with adverse human rights impacts has the potential to harm Oil Search’s community relations, undermine our social licence to operate and create instability. By efficiently identifying and managing security and human rights risks, we give our host communities confidence and minimise the potential for disruption.

Under development or being updated

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POLICIES

Social Responsibility Policy

Code of Conduct

HSES Policy

Human Rights Policy

STRATEGIES & PROCEDURES

Social Responsibility Strategy

Use of Public and Private Security

Emergency and Incident Management

Responsible Supply Chain Strategy

Social Impact Assessment and Management

Land Access and Resettlement

SUPPORTING ACTIVITIES

Risk assessment

Incident reporting

Community Affairs Information Management System

Grievance management

Social impact screening

Human rights training

Supplier Code of Conduct

2 Maplecroft 2017 Human Rights in PNG briefing

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To identify potential human rights risks and assess controls and impacts, we undertook a review of our human rights risks in 2014. In 2017, we engaged Verisk Maplecroft (independent experts on global risk analytics) to update our PNG human rights risk profile. Their review confirmed that the risks associated with the use of public security forces were as relevant for Oil Search in 2017 as they were in 2014.

Security and Community Affairs specialists are located at each operational area and work in accordance with field community engagement plans. This guides a proactive and integrated approach to engaging with communities so that security risks are properly assessed and monitored; security controls are successfully implemented; and a consistent, timely and appropriate response is made to requests, queries or concerns raised by host community members.

Oil Search manages a risk register for each location that documents foreseeable risks and associated controls.

Our procedure governing crisis, emergency and incident management requires us to develop a security response plan as part of each field response plan. These are reviewed and approved by the Security team.

INCIDENT REPORTING AND MANAGEMENT

Security incidents are reported through InControl, Oil Search’s Company-wide incident reporting system. In 2017, we strengthened the system’s capabilities by including human rights incidents and impacts. This has improved management’s knowledge of incidents related to human rights and widened awareness of police interactions beyond our operations.

Oil Search employees and contractors are required to report suspected breaches of the Code of Conduct,

including those related to human rights and discrimination, with the option of utilising the Oil Search Whistle-blower Hotline. This is a confidential, independently operated, multilingual service that allows employees, contractors, joint venture partners, customers and other stakeholders to confidentially report suspected violations.

Community members can raise matters related to security and human rights at any time with the Oil Search Community Affairs team, with site managers through their resident VLO, or through the Whistle-blower Hotline.

Issues, grievances and community engagement are recorded and managed by Community Affairs through the Community Affairs Information Management System.

All allegations and incidents related to human rights and security are

reviewed by the VPSHR Steering Committee. Material community grievances, including human rights incidents, are reported to the senior management team and Board HSSC.

See the Oil Search website for more information on our human rights governance.

SECURITY AND HUMAN RIGHTS RELATED INCIDENTS IN OUR OPERATIONAL AREAS IN 2017

In 2017, there were two incidents related to security and human rights. There were no human rights related calls to our Whistle-blower Hotline.

� In August, a member of the local community made a formal complaint to the local police command against two officers for excessive use of force during an arrest. The matter was referred by the police for further investigation and was later resolved when the affected person accepted compensation paid by the officers.

� Community members lodged a complaint with Oil Search regarding police misconduct at police-established checkpoints within our project impact area. Oil Search brought the matter to the attention of senior police staff, who assigned an investigator from the Crime Investigation Department. The police investigator has completed his enquiries and a report, which supports the allegations made by community members, has been submitted to senior police for review and direction.

In both instances, the police officers involved were not performing duties related to Oil Search’s activities or operations at the time of the alleged incidents. However, they were part of the contingent that receives an allowance from Oil Search under the terms of the MoU between Oil Search and the RPNGC.

H u m a n R i g h t s a n d S e c u r i t y G o v e r n a n c e

The Hela Province of PNG, an Oil Search operating area,

experiences high levels of tribal‑related fighting and lacks

public services and development. As 2017 was an election year,

these conflicts escalated, adding to community unrest. Oil Search

supported the Government’s stabilisation efforts by providing logistics support to local RPNGC

personnel and facilitating communication between the

warring parties. Our ongoing commitment to sustainable community

development within the region is a long term strategy also

aimed at maintaining stability.

S U P P O R T I N G S T A B I L I T Y

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P r o m o t i n g & A d v a n c i n g V P I I m p l e m e n t a t i o n

IN-COUNTRY ENGAGEMENT IN THE VPI

In PNG, Oil Search is well positioned to support implementation of the VPI through the Company’s own initiatives and through cooperation with our key operating joint venture partners, ExxonMobil and Total, who are both VPI signatories.

In September 2017, Oil Search convened and hosted a Security Managers’ meeting in PNG for eight VPI participant extractive companies. The meeting allowed participants to share current practices, experiences and challenges. Future meetings are anticipated, and they may expand to include other participants and subject matter experts.

CORPORATE ENGAGEMENT IN THE VPI

Oil Search strives to provide timely responses to requests from other VPI participants to facilitate greater understanding of issues related to VPI implementation, and we actively engage with them.

Oil Search participated in the March 2017 Annual Plenary Meeting in Ottawa, Canada and is committed to future participation in the VPI through these meetings. We believe they provide a strong platform for multi-

stakeholder engagement and shared learning on security and human rights in the extractive industries sector.

We regularly joined Corporate Pillar calls during the year and our senior managers met with the Fund for Peace (a VPI NGO participant) mid-year. The meeting focused on sharing PNG knowledge and experience.

Oil Search participates in a range of industry and related forums where we promote the VPI with peers and governments.

Oil Search is an active member and participant in the Global Compact and the GCNA.

� A senior Oil Search representative is a director on the GCNA Board and chairs the Sustainable Development Steering Committee and Leadership Group. This forum provides the opportunity to develop and demonstrate an understanding of links between sustainable development initiatives, peace and justice and promotes active measures for reducing the potential for conflict.

� Oil Search was an active participant in the GCNA Human Rights Leadership Group and associated forums.

� A senior Oil Search representative took part in the annual Australian Business & Human Rights Dialogue, which was co-convened by the GCNA and the Australian Human Rights Commission. The forum explored how businesses can promote and realise human rights. The 2017 theme was human rights due diligence. Our Managing Director, Peter Botten, was on the High Level Panel at the Dialogue and actively promoted our VPSHR participation.

Oil Search participated in the Australian Department of Foreign Affairs and Trade’s Business Roundtable Consultations on the need for a National Action Plan for Business and Human Rights.

Oil Search is a member of IPIECA’s Social Responsibility Working Group, which includes a Task Force on Security and Human Rights.

P R O M O T I N G & A D V A N C I N G V P I I M P L E M E N T A T I O N

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V o l u n t a r y P r i n c i p l e s o n S e c u r i t y a n d H u m a n R i g h t s R e p o r t 2 0 1 7

So far, we have learned that:

� Having a structured plan allows us to review processes and incorporate learnings as we progress.

� There is value in collaborating with other participants, as evidenced by the Oil Search-led Security Managers meeting in PNG and our attendance at the Plenary Meeting in Ottawa in March.

Through the multi-year plan, Oil Search will contribute to the implementation and advancement of the VPSHR with a series of ongoing actions that focus on:

� Strengthening our risk assessment, incident reporting and grievance management systems.

� Enhancing performance requirements in relation to the management of public and private security providers.

� Guiding our security and human rights training content and reach.

� Supporting greater alignment with our joint venture partners and engagement with peers.

� Establishing criteria for screening and evaluating contractors.

� Benchmarking our security and human rights practices.

� Participating in industry, government and other security and human rights forums.

L E S S O N S L E A R N E D

Lessons Learned

Oil Search is in the initial stages of our multi-year VPSHR Implementation Plan, which focuses on the core aspects of the VPI.

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V P S H R V e r i f i c a t i o n a n d R e p o r t i n g F r a m e w o r k

V P S H R V E R I F I C AT I O N A N D R E P O R T I N G F R A M E W O R K

VPSHR REPORTING REQUIREMENT CATEGORY REPORT REFERENCE

COMMITMENT TO THE VPI

Public Statement of commitment or endorsement of the VPs, engagement

in the VPI, and transparency

Public Statement

� Human rights and security approach

� Transparency

Engagement

� Stakeholder engagement

� Promoting and advancing VPI implementation

Transparency � Transparency

Examples of promoting awareness of the VPs throughout the organisation or government,

including within the value chainAwareness � Stakeholder engagement

� Promoting and advancing VPI implementationExamples of promoting and advancing

implementation of the VPs internationallyPromotion

POLICIES, PROCEDURES AND RELATED ACTIVITIES

Relevant policies, procedures, and /or guidelines (or any changes there to from the previous reporting year)

to implement the VPs

Policies and Procedures

� Human rights and security governance

� Policies, procedures and guidelines

Company procedure to conduct security and human rights risk assessments,

and integrate findingsRisk Assessment � Security risk assessment

Company procedure or mechanism to report security‐related incidents with human rights

implications by public/private security forces relating to the company’s activities

Engagements with Security Forces

� Human rights and security governance

� Incident reporting and management

� Engagement with security  forces

Company procedure to consider the VPs in entering into relations with private

security providers

Company procedure or mechanism to investigate and remediate security related incidents with human rights implications by public/private security forces relating

to the company’s activities

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V o l u n t a r y P r i n c i p l e s o n S e c u r i t y a n d H u m a n R i g h t s R e p o r t 2 0 1 7

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VPSHR REPORTING REQUIREMENT

CATEGORY

REPORT REFERENCE

COUNTRY IMPLEMENTATION

Overview of country operations selected for reporting

Country Operations � Introduction

� Operations in other countries

Engagements with stakeholders on country implementation

Stakeholder Engagement � Stakeholder engagement

VPs considerations in the selection of private security providers and

formulation of contractual agreement with private security providers, as well as an arrangement with

public security forces

Engagements with Security Forces � Engagement with

security forces

Examples of supporting outreach, education, and/or training of (i) relevant personnel, (ii) private

security, (iii) public security and/or (iv) civil society (e.g. local NGOs,

community groups)

Awareness & Engagement

� Stakeholder engagement

� Promoting and advancing VPI implementation

Company procedure to review progress on implementing the VPI

at local facilitiesPerformance

� Policies, procedures and guidelines

� Performance summary

LESSONS LEARNED

Lessons or issues from this reporting

year, as well as plans or opportunities to advance the VPs for the organisation

Learnings

� Lessons learned

VPSH

R V

erification and Reporting Fram

ework

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A C R O N Y M S

ACCR Australasian Centre for Corporate Responsibility

AHRC Australian Human Rights Commission

GCNA Global Compact Network Australia

HSSC Health, Safety and Sustainability Committee

HSES Health Safety Environment and Security

IPIECA IPIECA is the global oil and gas industry association that shares and promotes good practice and knowledge to help the industry and improve its environmental and social performance

KPI Key Performance Indicator

MoU Memorandum of Understanding

NGO Non-Governmental Organisation

PNG Papua New Guinea

RPNGC Royal Papua New Guinea Constabulary

UNGC United Nations Global Compact

UNGP UN Guiding Principles for Business and Human Rights

VPs Voluntary Principles

VPI Voluntary Principles Initiative

VPSHR Voluntary Principles on Security and Human Rights

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Transparency Report

Climate Change Report

VPSHR Report

Enquiries and feedback on this reporting and peformance are welcome.Please contact the Oil Search social responsibility team on:

[email protected]

Social Responsibility Microsite

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C L I M A T E C H A N G E R E P O R T

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V O L U N T A R Y P R I N C I P L E S O N S E C U R I T Y A N D H U M A N R I G H T S

A N N U A L R E P O R T T O T H E V P S H R I N I T I A T I V E 2 0 1 7

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