Frequently Asked Questions about SRI
Here are answers to some of the questions about Socially Responsible Investment that we encounter most frequently. If you can't find what you are looking for here, please contact our Investor Relations department.
Corporate Governance Questions
- Could you please explain your SD commitments?
- Could you please explain the 'sustainable role' of the seismic sector?
- Why did you create a new HSE, SD & SR Committee?
- Will you be proactive regarding the art.224 of the Law Grenelle2?
- Do you have a cross-division approach to SD issues or do you prioritize them?
- Do you plan to increase the percentage of independent members of the Board of Directors?
- How is your SD policy built?
- Which indicators have you chosen for your public reporting?
- Have you clearly identified your ESG issues?
- How do you manage your exposure to corruption risks?
- Do you have a whistleblowing system?
Environment Questions
- Could you please explain the means allocated to environmental issues?
- Please explain the environmental performance assessment system.
- Which energies are used?
- Which operations are the most energy-consuming?
- Please explain your waste & water management for onshore and offshore operations.
- Have you identified you operating activities’ impact on biodiversity?
- How do you manage to reduce your footprint?
- What is your role in the shale gas industry?
- Is climate change integrated into your business strategy?
- Do you disclose your emissions to CDP?
- Have you developed or planned SD initiatives?
Social Questions
- Could you please explain your HR strategy?
- Could you please explain your career management system?
- You favor local employment. For example, in India, the processing center employs 96% of local people. How do you address local and economic development issues?
- Have you identified the most 'social' sensitive countries?
- How many subcontractors do you work with worldwide?
- The French government stresses on the necessity to prevent psycho-social risks at work. How do you manage to reduce stress at work?
- Please explain your commitments to Human Rights.
- What does VOLPRIN mean?
- How do you manage piracy?
- Is the respect of ESG issues required in the subcontractors’ contracts?
HSE Questions
- Which HSE issues have you identified?
- How do you track your subcontractors compliancy with your commitments?
- Which operating activities are audited?
- Do HSE audits include SD issues?
Stakeholder Questions
Corporate Governance Questions
- CGG is committed to SD through a balanced approach to economic development, social progress and environmental management. We believe that it involves all internal and external stakeholders. We are member of the United Nations Global Compact (UNGC) and recognized the 10 principles (which are derived from the Universal Declaration of Human Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention against Corruption). We respect the indigenous people and their rights as declared in the United Nations’ Declaration on the Rights of Indigenous People.
- We strive to continually improve SD performance through periodic review. To achieve this goal, the HSE, SD&SR division is supported by a network of local SD correspondants.
2. Could you please explain the 'sustainable role' of the seismic sector?
- Accurate seismic data allows a better exploration of new or existing oil and gas fields.
- Through specialized capabilities to operate in remote, hostile and environmentally sensitive areas, with acquisition and equipment designed to the specific geological needs, and with improved imaging accuracy, CGG provides a sustainable alternative to drilling-only as it helps to decrease the risk of drilling non-producing wells.
- Seismic can drastically help increase the efficiency of energy use in the exploration process, and reduce the environmental footprint through reducing the number of wells needed to be drilled and significantly reducing the number of dry holes drilled.
- Seismic imaging allows our clients to assess the possibilities of CO2 sequestration in subsurface.
- With the development of the microseismic technology, we can monitor and understand the process of fracturation to prevent the ground water pollution in the shale gas operations.
3. Why did you create a new HSE, SD & SR committee?
- In 2010, we updated our internal rules and regulations and we decided to strengthen our SD strategy and to be particularly focused on tracking HSE performance which was previously under the Audit Committee scope. This is why we decided to create a HSE/SD committee in 2011. The committee is linked to the General Secretary and reports to the Executive Committee and the Board of Directors. Its missions are:
- To determine the main improvement axis of the HSE performance and to compare it to our peers
- To review High Potential Impact and their operating consequences
- To follow any major HSE crisis and to find the required solutions
- To keep the Board informed of any HSE action taken by the Group
4. Will you be pro-active regarding the art.224 of the Law Grenelle2?
- Yes, we are working with a consulting firm to develop new CSR indicators that will be implemented in 2011 (and not in 2012 as required by the Law).
5. Do you have a cross-division approach to SD issues or do you prioritize them?
- We are a fully integrated seismic service provider which means that we have different divisions such as Equipment, Marine, Land and Processing. These operating activities have their own specific ESG issues. For example, the social issues are significant for the Marine and Land services and not for the Processing. This is why we privilege a cross-division approach. This enables us to identify, measure and manage all issues as ESG issues are evolving in time as well as regulations.
6. Do you plan to increase the percentage of independent members of the Board of Directors?
- Yes and we have assured a better equilibrium in the men and women representation among the Board of Directors. In a first time, Mrs Kathleen Sendall joined the Board of Directors on May 5, 2010. In a second time, the Board of Directors proposed during the annual General Assembly to nominate two new independent members, Mrs Lombard and Mrs Myrberg in order to have more than 20% of women among the Board of Directors in 2011.
7. How is built your SD policy?
- The SD policy is built by the Executive Committee and released in the document « Quality, Health, Safety and Protection of the Environment ». This policy is focus on the economic, social and environmental issues as well as our own specific issues as an oil service provider: promotion of new technologies reducing our footprint, a better HSE risk management, a long-term dialogue with our stakeholders. We took into account our stakeholders’ expectations when we build this policy (employees, subcontractors, public authorities, etc.)
8. Which indicators have you chosen for your public reporting?
- Our indicators are compliant with the Global Reporting Initiative
- Example for the environmental indicators: direct energy consumption, total water withdrawal
- Example for the labor practices: total workforce by employment type, total number and rate of new employee hires a employee turnover by age group, gender and region, average of hours of training per year per employee.
9. Have you clearly identified your ESG issues?
- Yes, we have clearly identified them and they are classified as risks. Once risks have been identified and assessed, they are classified by risk family: operational risks, technology risks, financial and strategic risks, HR risks and communication risks. The Risk map will change as risk environment of the Group changes. This Risk map is presented to the Executive Committee, the Audit Committee and the Board of Directors.
10. How do you manage your exposure to corruption risks?
- We recognize that we are operating in some countries that present corruption risks. We formalized a policy to reduce the risk of non conformity and to prevent any act that will go against the OCDE, Foreign Corrupt Pratices Act of 1977 and US Office of Foreign Assets Control. We displayed several systems to communicate on this risk:
- A steering committee: assesses the risks which are not compliant with the Business Code of Conduct
- EthicsAlert: answer questions and respond to concerns about compliance, ethics and the requirements described in the Business Code of Conduct
- Specific Risk Corruption & Financial Safety Training for senior managers and a specific training 'Governance and Performance'
- Intern Audit Control system
11. Do you have a whistleblowing system?
- Yes, EthicsAlert. The telephone line is operated by an independent company that helps businesses respond to questions and concerns about compliance and ethics.
Environment Questions
1. Could you please explain the means allocated to environmental issues?
- We are committed to optimize the environmental performances based on the principle of ongoing improvement and to reduce our operatings’ impact on the environment.
- A dedicated person is in charge of the environmental strategy and is supported by local correspondents. The Environment is included in the HSE department and HSE correspondents are displayed in every divisions.
- We have allocated resources to environment management including: Environment training (reviewed each year by the management), onsite environmental awareness and training (the environmental manager and specialized environmental advisors support local HSE), monitoring (PRISM).
- We have 25 people dedicated to HSE & SD located in our offices and 120 HSE local correspondents (19 part time in the Processing centers)
2. Please explain the environmental performance assessment system.
- Audits are driven regularly by specialized audit teams to determine if the onsite assessment is in line with the Group’s standards and if actions are settled to improve the environmental performance.
- We use fossil energies (Marine fuel-MDO, oil-HFO, kerosene). We have made the choice to mainly use the MDO (88% of emissions). The significant advantage of using MDO over HFO is the higher heat value of diesel oil, which means lower fuel consumption and less polluting (a reduction in fuel consumption of 5%). But it is more expensive. Since October 2011, the Crawley site will use renewable energy for all of its energy needs.
4. Which operations are the most energy-consuming?
- Marine operations (81% of CO2 emissions) are the most energy-consuming through the use of oil for the vessels. For the Land operations (19%), the transport represents the most important energy consuming room. For the Equipment and Processing businesses, we use mainly electricity and gas.
5. Please explain your waste & water management for onshore and offshore operations.
- We apply a waste management system worldwide. The waste management is organized in the following hierarchy: waste reduction, reuse, recycling, treatment or collection for certified plants.
- For Land operations, black and grey waters are treated onsite by specialized sub-contractors. In Marine, the majority of these waters are treated on board as the vessels are equipped by permanent water treatment units.
6. Have you identified you operating activities’ impact on biodiversity?
- Yes, we recognized that our land and marine operations can lead to the loss of Biodiversity through extensive use of land or the disruption of marine ecosystems.
7. How do you manage to reduce your footprint?
- We systematically carry out preliminary impact surveys before every land or marine project. We have settled an observation and monitoring program of the protected species during our marine acquisition operations: dedicated persons to the observation of the marine fauna are on board and to ensure that the Group respects the regulations. We use also the Passive Acoustic Monitoring (PAM) in order to give enough time for the mammals to leave the area where we are operating. We are currently upgrading our fleet with two new vessels which meet the “clean design” requirements of Det Norske Veritas (DNV).
- For land operations, we are committed to replant trees or in case of fields, to indemnify land owners and farmers.
- We are members of the International Petroleum Industry Environmental Conservation Association Biodiversity Working Group. We collaborate with our clients to develop tools to better assess and manage Biodiversity.
8. What is your role in the shale gas industry?
- We help the shale gas industry to better understand the fracturation process and therefore to better manage the risk associated to ground water pollution through the microseismic technology.
9. Is climate change integrated into your business strategy?
- No, it has not been yet integrated but certain consequences of such change may be already anticipated and are already integrated in our projects and activities.
10. Do you disclose your emissions to CDP?
- Yes, we do.
11. Have you developed or planned SD initiatives?
- According to the recommendations of ISO 14062 norm, Sercel will take into account SD issues in its development product guidelines. This will enable us to determine environmental targets for products and to define improvement axis.
- Sercel has developed a recycling service for its clients concerning its end of life products.
- Sercel has developed solid streamers which prevail the use of Isopar M, a hydrocarbon contained in the liquid streamers with the use of FOAM . Our fleet is 80% equipped with solid streamers by the end of 2010.
- We are upgrading our fleet with two new vessels which meet the “clean design” of DNV and our fleet meets the Marine International Pollution convention (MARPOL)
- We are developing technologies and services for the CO2 storage and the monitoring of fracturation to prevent the ground water pollution.
- As part of our SD/SR objectives for 2011, we have launched work groups to study the ways to reduce our flight travels and the energy consumption in our main premises (develop visio-conferencing, improve behaviours and the energy efficiency of our facilities)
- In July 2011, CGG moved in Massy in a new building HDE (green building standard). At the occasion, CGG cooperated with the city authorities and the other companies located in the same area to discuss and agree the improvement of the public transportation.
Social Questions
1. Could you please explain your HR strategy?
- Our commitments are disclosed in two codes: "Prism Policy - Health and Wellness" and "Prism Policy - Sustainable Development". The HR priorities are the following ones: talent attraction and retention. To do so, we have developed a network with universities (Nancy Geology School, IFP, University of Calgary, University of Stanford and Colorado School of Mines ) where we can find the potential talent we need.
2. Could you please explain your career management system?
- Our commitment to career management is to:
- Ensure training
- Anticipate long-term employment needs and skill requirements
- Promote career developments
- We have set up an internal job opportunity marketplace and have formalized the skill requirements for the various job positions. Employees have regular performance assessment interviews.
3. You favor local employment. For example, in India, the processing center employs 96% of local people. How do you address local and economic development issues?
- Our commitment to these issues are disclosed in our SD policy. We have allocated extensive means to address social and economic development including:
- Support to social programs on health & education
- Local content of operations (the local employees have full access to training)
- Hiring/training of local subcontractors (sharing of know-how)
- Training (partnerships with universities)
4. Have you identified the most 'social' sensitive countries?
- Yes, through a Risk Matrix which assesses the human rights risks. Every country where we operate has a rating according to 5 criteria (Child Labor, Freedom of association & collective bargaining, Forced Labor, Indigenous People, Corruption). For every criteria, we assess the level of risk: low, medium and high. The combination of these assessments leads to a final rating for every country. We use different sources: IOL, Human Rights Watch, Transparency International…This rating is reviewed annually. With this matrix, the line managements can take the required measures to reduce the risks.
5. How many subcontractors do you work with worldwide?
- 250 sub-contractors worldwide. We work 90% with level 1 of our subcontractors.
6. The French government stresses on the necessity to prevent psycho-social risks at work. How do you manage to reduce stress at work?
- We are involved in the development of a large psycho-social risks management program. France is the pilot entity for the program. A psycho-risks Committee has been created involving the management trade union representatives, professionals from psycho-risks analysis and occupational medicine. We have put in place stress evaluation grids. Internal surveys are conducted regularly. Stress management training for managers has been launched in 2011. Finally, we have an Employee Assistance Program which provides an access to professional problems.
7. Please explain your commitments to Human Rights.
- We recognize the 10 principles as member of the Global Compact. We have formally endorsed in our Social Responsibility Policy the Rights of Indigenous People. In addition, we have announced in our security protection policy our commitment to the implementation of the Volprin in case we use protection firms. Our commitment applies throughout the Group and is supported by CEO. We conduct audits to ensure the respect of Human Rights.
- Voluntary Principles of Oil & Mining Industry: provides guidance to extractives companies on maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fondamental freedoms.
- Security might be a concern in certain area of activities. We are committed to provide a secure working environment by protecting our employees. We always privilege dialogue with the authorities especially through our Community Relationship Management. We can use private security providers. Such providers are contracted after an audit of their background, skills, integrity and professionalism. In 2010, we changed our Security Policy to reflect our endeavors to implement the recommendations of:
- the 'Volprin'
- the “OGP Firearms and Use of force”: clear instructions are given on how firearms and force should be used. Be sure that the national forces should comply with the international ethical standards.
- the “IMO guidance regarding piracy and armed robbery against ships”: UN International maritime organization. It has promoted the adoption of some 50 conventions and protocols and adopted more than 1000 codes and recommendations concerning maritime safety and security and the prevention of pollution and related matters.
10. Is the respect of ESG issues required in the subcontractors’ contracts?
- Yes. The supply chain department is in charge of respecting the Purchasing Code of Conduct and the Selling Code of Sercel. Those documents were sent to all of the Group’s purchasers. The Purchasing Department is trained to some SD issues and to CSR. The Purchasing Code of Conduct was sent to the main 250 subcontractors (85% of our sub-contractors in value). Since 2010, the content of these documents has to be entitled in contracts clause.
HSE Questions
1. Which HSE issues have you identified?
- Our HSE issues are coherent with the risks associated with our operations. The most important one is the transport. We address 4 issues: safety, transportation safety (reducing exposure to road traffic elimination of vehicles where possible), specific measures for subcontractors (selection driven by Contractor HSE Management) and occupational health. We monitor the following performance indicators: total recordable case frequency, lost time injury frequency rate, severity rate, absenteeism.
2. How do you track your subcontractors compliancy with your commitments?
- Through audits. We audit our employees and sub-contractors on the same basis. The sub-contractors have also to meet SD requirements. We have developed a score-card system in order to identify the critical sub-contractors: every six months, the ship-managers performance is assessed and ranked on a 4 criteria category basis including HSE issues.
3. Which operating activities are audited?
- HSE audits are carried out for all shipyards, local airplanes, helicopters and other services that we will subcontract.
4. Do HSE audits include SD issues?
- Yes since December 2010, the HSE audits include SD issues (including sub-contractors): Child Labor, Forced Labor, Freedom of association, right to collective bargaining, discrimination, disciplinary practices, working conditions, remuneration, communities relationship, safety and corruption.
Stakeholder Questions
1. To what extent your company interacts with external stakeholders?
- We operate worldwide and hire a significant number of local employees. This is why a sustainable relationship with communities is essential. Building long term relationships will enable us to be back into the region and to be appreciated by local communities. Our policies have been reinforced to better highlight our responsibilities (through CRMP) :
- To respect the Human Rights as proclaimed by the Universal Declarations of the United Nations
- To respect the Rights of the Indigenous people as defined by the United Nations’ Declaration on the Rights of Indigenous People
- The use of the recommendations laid down in the “Voluntary Principles on Security and Human Rights” (Volprin), the “OGP Firearms and Use of Force” and the “IMO guidance regarding piracy and armed robbery against ships”.
