Premier Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 12:29:39 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 Case study: How Premier creates economic value for its stakeholders https://sustaincase.com/case-study-how-premier-creates-economic-value-for-its-stakeholders/ Wed, 24 Aug 2022 06:20:14 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14008 Premier is an international oil and gas exploration and production company, employing 776 people globally and organised into four business units – UK, Indonesia, Vietnam and the Falkland Islands. Premier believes that it can most effectively generate longer-term value for its shareholders by operating in a way that also delivers lasting economic benefits to all its other stakeholders. This case study is based on the 2020 Sustainability Report by Premier, prepared in accordance with the GRI Standards, 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 […]

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]]> Premier is an international oil and gas exploration and production company, employing 776 people globally and organised into four business units – UK, Indonesia, Vietnam and the Falkland Islands. Premier believes that it can most effectively generate longer-term value for its shareholders by operating in a way that also delivers lasting economic benefits to all its other stakeholders.

This case study is based on the 2020 Sustainability Report by Premier, prepared in accordance with the GRI Standards, 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.

Abstract

Consistently delivering value helps Premier to build strong relations with its business partners and host governments  Tweet This!, enabling it to better access new business opportunities. In order to create economic value for its stakeholders Premier took action to:

  • create economic value for business partners, employees, providers of capital and the government
  • support communities

What are the material issues the company has identified?

In its 2020 Sustainability Report Premier identified a range of material issues, such as asset integrity and process safety, emergency preparedness and crisis management, energy transition and climate change, occupational health, safety and security. Among these, creating economic value for its stakeholders stands out as a key material issue for Premier.

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 Premier engages with: 

To identify and prioritise material topics Premier engaged with its stakeholders through the following channels: 

Stakeholder Group                Method of engagement
Investors ·      Annual reporting

·      Website

·      Direct engagement

·      Stakeholder engagement sessions
Employees Employees:

·      Ongoing workplace engagement

·      ‘Town hall’ meetings

·      Direct dialogue

·      Engagement surveys

·      Staff forums

·      Performance reviews

Contractor personnel:

·      Ongoing workplace engagement

·      ‘Town hall’ meetings

·      Engagement via contractor and supplier agencies

·      Contractual agreements

Organised labour:

·      Regular scheduled meetings

·      Collective labour agreements
Business partners Joint venture partners:

·      Direct engagement

·      Contractual agreements

Contractors:

·      Direct engagement

·      Performance monitoring

·      Contractual agreements

Customers:

·      Direct engagement

·      Vendor processes

·      Contractual agreements
Government National governments:

Joint dialogue, including through:

·      Oil & Gas UK (OGUK)

·      Oil & Gas Authority (OGA)

·      Department for Business, Energy & Industrial Strategy (BEIS)

·      British Independent Oil Exploration Companies (BRINDEX)

·      UK Oil Industry Taxation Committee (UKOITC)

Direct dialogue, including with:

·      Falkland Islands Government (FIG)

·      Indonesian government

·      Vietnamese government

Regulators:

Direct dialogue, including with:

·      FIG Department of Mineral Resources (FIG DMR)

·      FIG Department of Health and Social Services (FIG DHSS) SKK Migas (Indonesia)

·      Oil and Gas Authority (OGA – UK)

·      Department for Business, Energy and Industrial Strategy (BEIS)

·      HM Revenue and Customs (HMRC)

·      Offshore Petroleum Regulator for Environment and Decommissioning (OPRED)

·      Maritime & Coastguard Agency (MCA)

·      Secretary of State’s Representative (SOSRep)

·      Health and Safety Executive (HSE – UK)

·      PetroVietnam (Vietnam)

·      National Agency of Petroleum – ANP (Brazil)

·      Brazilian Institute of Environment and Renewable Natural Resources – IBAMA (Brazil)

Joint dialogue, including through industry association AMEXHI and joint venture partner, with SENER and CNH, ASEA (Mexico)
Society Civil society and Nongovernmental organisations (NGOs):

Direct and indirect engagement (including via stakeholder engagement sessions) with:

·      IPIECA

·      UN Global Compact Network UK

·      Transparency International UK

·      Oil & Gas UK (OGUK)

·      Various NGOs in countries of operation

·      Falklands Conservation

Local communities:

Direct engagement (via local Community Relations teams and business unit managers) and development-focused community investment programmes

What actions were taken by Premier to create economic value for its stakeholders?

In its 2020 Sustainability Report Premier reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for business partners, employees, providers of capital and the government
  • Much of the value Premier creates is distributed throughout its host societies, directly supporting long-term socio-economic development. This includes distribution through:
    • payments to business partners, including locally based contractors
    • payments to Premier’s workforce, including wages and benefits paid to employees from its host countries
    • payments to Premier’s providers of capital, including shareholder dividends and interest on debt
    • payments to government, including corporate income taxes, royalties and other payments to Premier’s host governments
  • Supporting communities
  • Premier’s spending on community investment projects helps deliver sustainable social, economic and environmental benefits for local communities and their host governments. In 2020, Premier spent US$0.55m on community investment projects.

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

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

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  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Premier, 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 following link:

https://www.harbourenergy.com/media/xw1jwniw/2020-sustainability-report.pdf

Note to Premier: 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.

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