The case for CSR/ Sustainability Reporting Done Responsibly


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Home / case studies / Case study: How Halliburton promotes sustainability across its supply chain

Case study: How Halliburton promotes sustainability across its supply chain

Halliburton is one of the world’s leading oilfield service providers, helping its customers maximise value throughout their asset life cycles. Halliburton requires the same high standards of corporate citizenship throughout its supply chain as in its global operations  Tweet This!, by striving to maximise the positive economic and social impacts of its value chain while minimising environmental impacts.

This case study is based on the 2019 Annual & Sustainability Report by Halliburton published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

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Halliburton’s supplier expectations are clearly stated in its Supplier Ethics Letter and training on topics including health, safety and environment (HSE) standards, human rights and conflict mineral compliance is also provided to its suppliers, to make sure they meet Halliburton’s standards. In order to promote sustainability across its supply chain Halliburton took action to:

  • promote conflict mineral compliance
  • combat modern slavery and human trafficking

What are the material issues the company has identified? 

In its 2019 Annual & Sustainability Report Halliburton identified a range of material issues, such as health, safety and wellness, corporate governance, business ethics and transparency, climate change, information security/data management. Among these, promoting sustainability across its supply chain stands out as a key material issue for Halliburton.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Halliburton engages with:

Stakeholder Group                Method of engagement
Shareholders & analysts ·      Annual reporting

·      Shareholder meetings

·      Quarterly conference calls

·      Regular meetings and conference calls with analysts, institutional investors and others

Customers ·      Collaborating directly on developing new technologies
Employees

 

 

 

·      Training programmes

·      Quarterly check-ins

·      Semi-annual Pulse survey

·      Employee groups

·      Regular development reviews

Suppliers ·      Workshops and meetings
Government

 

 

 

·      The Halliburton Government Affairs function works with government officials to provide in-depth information on operations, examine emerging technologies and contribute to the discussion on regulatory standards
Industry associations

 

 

·      Across Halliburton, business groups engage with relevant associations with respect to ESG issues by participating in a wide variety of committees and working groups
Communities & non-governmental organisations (NGOs)

 

·      Volunteer activities

·      Halliburton Foundation

·      Donations

·      Ad hoc meetings with NGO groups to discuss key issues

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Halliburton collected feedback from over 74 stakeholders, including employees, customers, shareholders, suppliers, government, trade associations and community organisations, through a survey.

What actions were taken by Halliburton to promote sustainability across its supply chain?

In its 2019 Annual & Sustainability Report Halliburton reports that it took the following actions for promoting sustainability across its supply chain:

  • Promoting conflict mineral compliance
  • Halliburton’s suppliers are required to provide Democratic Republic of Congo (DRC) conflict-free materials to Halliburton, and to furnish information to assist in determining that work provided to Halliburton is DRC conflict-free and to respond to requests for information on sources of supply. These requirements support Halliburton’s commitment to the Responsible Minerals Initiative and its compliance with Section 1502 of the United States Dodd-Frank Act. In 2019, a total of 1,294 suppliers were identified as in-scope and contacted as part of the Conflict Minerals campaign. Halliburton removed suppliers from its approved supplier base who did not cooperate with its Dodd-Frank compliance requirements.
  • Combating modern slavery and human trafficking
  • Halliburton performs due diligence, in several ways, on suppliers with respect to modern slavery and human trafficking and communicates its supplier expectations regarding human rights through the Supplier Ethics Letter and the Supplier Ethics Statement. Halliburton requires suppliers to contractually commit to protect and uphold the fundamental human rights of their employees as stated in the Universal Declaration of Human Rights. To ensure compliance, Halliburton conducts an evaluation of its highest-spend suppliers on an annual basis. In 2019, Halliburton enhanced the supplier evaluation process to include an assessment of its suppliers’ policies and procedures regarding forced labour and human trafficking, wage deductions, and timely and accurate payment of wages for all workers. Halliburton’s goal is to conduct business with suppliers who share its commitment to ethical operations.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified & IEMA recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified & IEMA recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by Halliburton, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Halliburton: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.