Managing social-related risks and impacts

We address the social and community aspects of our operations and projects at the business unit (BU) level.

We have a comprehensive governance framework that extends from the board of directors, through executive and senior management to the staff levels in each BU. Read more about our sustainable development governance structure.

Risk and impact assessment

By understanding the social, economic, political and environmental factors affecting stakeholders, we can identify and monitor emerging trends, manage potential impacts and reputational risks associated with our operations and add value to the communities where we operate.

Our stakeholder identification process is a key component of social risk assessment. Each BU is responsible for identifying stakeholders to understand their perspectives and concerns. Through our ongoing relationships with stakeholders, we identify important issues as well as potential opportunities for collaboration. From this we develop an engagement plan to address concerns and foster mutually beneficial relationships. By having open dialogue, we are able to identify and address potential impacts associated with our operations. This is done through our integrated sustainable development (SD) risk management process where existing and planned exploration and production, and major projects are examined against the physical, social and political settings of our operations. Social assessments consider:

• Impacts to communities, including human rights, rights of Indigenous Peoples, labor rights, security, public health, political and economic issues.

• Stakeholder priorities, including support or opposition to company activities.

• Risks and impacts related to supplier and contractor activities.

• Cumulative effects of company and/or industry activities.

To support our BUs in operationalizing our Stakeholder Engagement Principles, we provide Social Performance Guidance with recommended internal processes and external engagement to understand and address stakeholder priorities. Based on this guidance, each BU manages local social risks, priorities and regulatory requirements, enabling tailored, region-specific business goals to address unique challenges and opportunities.

In 2023, five BUs and the corporate SD function identified and ranked eight significant social risks associated with potential project delays and business interruptions. Mitigations have been developed to address these risks.