Sustainability Report 2014
Evaluating our material aspects and measuring them to the GRI G4 standard creates a broader reporting mechanism. Through this process the Group ensures vital drivers of sustainable operations are factored into decision making and provides stakeholders with a view of organizational performance in more than financial terms alone.
Identifying material aspects and conducting a materiality assessment
GRI-G4-25 | GRI-G4-18
To deliver more sustainable operations we need to be able to recognise and respond to the most material aspects of our activities.
In order to define the most relevant topics for DOF, the HSEQ team undertook an internal process together with other key managers in the organization. By analyzing relevant documents and customers’ surveys it was possible to identify DOF’s most positive and negative economic, social and environmental impacts inside and outside of the organization.
The conclusions of that process led to a comprehensive list of material topics for the organization as well the identification of its key stakeholders.
Material issues and key stakeholders
The Group’s key stakeholders were identified as customers, employees, investors, suppliers and local communities.
The following material issues were identified (see Figure 5.1) as being the most relevant for DOF and its stakeholders:
- Business integrity and ethics
- Climate change and emissions to air
- Compliance to law and industry Standards
- Employment practices
- Risk and return
Product Realization was found to be a material issue, but is not listed above. For DOF, product realization is considered as reliability figures of operational uptime connected to vessels and ROVs. The objective is to be above 97% uptime for both asset types. Unfortunately this aspect has not been addressed in detail in this sustainability report.
To respond to these aspects reliable data is gathered, measured and monitored. The results allow us to measure performance, set targets and better focus management to improve our performance.
The materiality process included the consultation with some of DOF’s main stakeholder groups – employees and investors – as well as main directors of the marine side of the group. The engagement was done through one workshop session with each group of stakeholders where the materiality matrix was analyzed and the topics prioritized as being of low, medium, high or strategic importance. All the workshop sessions were arranged and held by DOF’s HSEQ team.
Due to time constraint, the engagement process with DOF’s main stakeholders was limited for its first reporting-year compared to best practice.
However, DOF intends to strengthen the engagement process in the future using both existing channels and meeting places (e.g. investor meetings, engagement surveys, processes with suppliers and customers) as well as considering other opportunities where relevant (advisory panels, public meetings, multi-stakeholder forums, focus groups, surveys, partnerships, etc.).
The reasons for choosing these particular stakeholders were determined through various analyses and consultations:
DOF does not have any other income but from oil and gas companies. This makes our clients a natural choice as a key stakeholder.
DOF is handling numerous clients globally. Some key clients are global and others only operate in a local or regional areas. This makes global engagement with all stakeholders challenging. The analysis of their expectations towards DOF are based upon reviews of existing contract requirements, client transfer of experience meetings, client joint and committee meetings, future projects and new expectations and finally internal reviews of client’s communication and public web pages.
DOF has over 5,000 employees. They are the backbone of DOF. Studies of feedback from numerous employee committees and separate dialogues with individuals were held to define our valued employees as a key stakeholder for DOF.
In the assessment identifying key stakeholders for DOF it became obvious to include investors represented by board members taking care of the investors’ interests.
DOF has over 6,000 suppliers in its supplier data base. It is not practical having one to one dialogue with each and every one of them regarding their expectations, neither to engage them all. However, suppliers to DOF are vital and are regarded as a key stakeholder. To compensate for in-depth dialogue with all of them, studies and dialogue have been done with key suppliers within the global logistic, advanced subsea equipment providers and shipbuilding yards.
DOF has its main operations offshore and is as such not visible in the local community, aside from office buildings and a few warehouses and offshore shore bases. However, in some communities DOF is a major player as an employer for an entity. This puts expectations toward the Company in the sense of contributing to the local community. It has not been practical to maintain a dialogue with all local communities we operate in, ie:
- In Rio de Janeiro there is a main office downtown for 200 of our onshore employees. The local community in Rio consists of ca 6.5 million people.
- At Storebø, where the global headquarters for DOF Management is situated, the office has ca 150 employees. The local community is approx. 5000 people.
- In Bergen, Norway, there are approximately 40 people employed in the DOF Subsea AS corporate office. The city as such has 275.000 inhabitants.
Based upon our internal discussions we have chosen our local engagement and priorities towards local communities by conversations with local politicians, churches, universities and technical museum to identify their expectations towards DOF.
Validation analysis of the materiality matrix
With the support from DNV GL, a validation analysis of DOF’s materiality matrix (see figure 5.2 in “Aspects & Boundaries” chapter) was conducted using a standardised ‘Materiality Tool’ which consisted of predefined external and internal criteria that every topic was measured against. These included a broad set of considerations such as financial criteria, sustainability context, DOF’s strategy, peer pressure, etc.. Each topic’s relevance was tested (from low to strategic) and where in the value chain they can have impact (whether positive or negative).