Sakhalin Energy: Building a Public Dialogue

The Company decided to start this type of public reporting on joining the UN Global Compact in November 2009. 
The publication of the Sustainable Development Report was preceded by several rounds of public hearings and profound consultations with external stakeholders.
The Sustainable Development Report not only covers the main activities of Sakhalin Energy in 2009, but also describes the Company’s key values and principles, demonstrating its focus on sound business practices and high standards of corporate culture. Sakhalin Energy CEO Andrey Galaev says: “Sakhalin Energy builds its business on the strategy of sustainable development [...]. This approach makes the production or process decision-making impossible without due assessment of potential impacts on the natural environment or communities in Sakhalin. I know that the Company’s activities have a very positive effect on the social and economic development of the region.”
An important achievement was successful completion of the Report’s public endorsement procedure by the Council for Non-Financial Reporting of Russian Union of Industrialists and Entrepreneurs (RUIE). In its opinion, RUIE concludes that Sakhalin Energy’s Sustainable Development Report “covers key areas of the responsible business practices according to the Social Charter of Russian Business, providing sufficiently full information on the Company’s activities in these areas”.
Sakhalin Energy’s transition to this new form of non-financial reporting is still another evidence of the Company’s open and responsible approach to business and its continuous focus on building a dialogue with the public. 
The presentation of Sakhalin Energy’s Sustainable Development Report was attended by members of the research and expert communities, federal and regional legislative and executive authorities, big business, indigenous people of Sakhalin and non-profit organizations dealing with the socio-economic development and social responsibility issues, as well as other community members and media.  
In November 2009, Sakhalin Energy joined the UN Global Compact and undertook public non-financial reporting based on the Global Reporting Initiative (GRI). 
Sakhalin Energy’s 2009 Sustainable Development Report is the first document produced in conformity with the GRI principles. Apart from the Sakhalin-2 Project information, the report describes the Company’s engagement with a wide range of stakeholders, and is actually an instrument of communication with buyers, partners, NGOs, local communities and government agencies.
The report puts special emphasis on the key principles of the UN Global Compact in the areas of human  rights, labour and environment.
In 2009, Sakhalin Energy was selected along with four other companies to participate in a pilot project to test the so-called  Ruggie Principles set out for business and human rights performance by Special Representative of the UN Secretary-General for Business and Human Rights, Professor John  Ruggie. In this project the Company is representing not only Russian business community, but the world oil and gas industry as well. Results from this project will be used to develop recommendations for businesses around the world.
The Report provides extensive information on the labour-management relations, personnel management and development, safety assurance and improvement of working environment, health protection and talent development, etc.
The significance attached in the Report to such aspects of the Company activity as environmental and industrial safety, natural environment protection and environmental management shows that the Company is guided by the highest environmental standards.
Sakhalin Energy regards as a priority its involvement in the social programmes in Sakhalin. The Report provides detailed information on the Company’s social investments implemented via sponsorship and philanthropic programmes in education, health care, upgrade of the common-use (including social) infrastructure and biodiversity protection. 
A special section of the Report is dedicated to the Company’s work with the indigenous people of Sakhalin, which is based on the long-term Sakhalin Indigenous Minorities Development Plan, representing a tripartite partnership programme. Sakhalin Energy’s partnership projects rank among the best social investment practices in Russia.
Sakhalin Energy has been presented with many awards for socially responsible performance by prominent Russian and international institutes.