Corporate Social Responsibility: The Company Perspective · 2013. 10. 10. · impact on Halliburton’s long-term success broadens. On behalf of all stakeholders, it is our purpose

Corporate Social Responsibility:The Company Perspective

David Hollas

Director of Global Sustainability and Environmental Performance

October 7, 2013

2© 2012 HALLIBURTON. ALL RIGHTS RESERVED.

CSR in the Value Chain: CEO

� "Halliburton sets high standards for its global

operations, and I'm proud that we are among the world's

leaders in corporate responsibility and sustainability,"

said Dave Lesar, Halliburton's chairman, president and CEO.

� "Corporate responsibility and sustainability are at the core of Halliburton's long-term success, and they are embedded throughout our business.“

� Source: “Halliburton Earns High Rankings in Dow Jones Sustainability Indices” Press Release dated

Sept. 18, 2013


CSR in the Value Chain: BOD

� “As social and environmental factors become

increasingly important to shareholder value, their

impact on Halliburton’s long-term success broadens. On

behalf of all stakeholders, it is our purpose and intent to

ensure that the impact continues to be positive and

substantial.”� Source: Halliburton “Board of Directors – Statement of Purpose” – 2012 Corporate Sustainability Report, page 7


Measuring Performance

� Corporate Sustainability Report

– Global Reporting Initiative (GRI)

Reporting Framework

• Application Level A, B or C

– Pros:

• Controlled source of external

information

• Laudatory document by nature

– Cons:

• Resource strain to produce

• Limits to size, readership, usability


Dow Jones Sustainability Index (DJSI)

� 3 scored “dimensions:”

– Economic

– Social

– Environmental

� Annual

questionnaire due

in May

� Results published

in September

2013 DJSI Participants:Energy Equipment and Services Sector


Dow Jones Sustainability Index (DJSI)

� Pros:

– Clearly measurable, defined benchmark

– Easy to improve year-on-year

� Cons:

– Detailed score reports are very expensive

– Debate about score weights of individual items

– Very resource-intensive (to achieve good score)


Carbon Disclosure Project (CDP)

� Separate Questionnaires:

– CDP Supply Chain

– CDP Water Disclosure

– Climate Change (Investor CDP)

– Forests

� Triggered by Clients

– Issue requests through CDP

– Become mandatory, with

deadlines


Carbon Disclosure Project (CDP)

� Pros:

– Good source of greenhouse gas data, best practices

for companies that take CDP seriously

� Cons:

– Extremely tedious on data, mostly irrelevant

– O&G services sector not accurately represented


Conflict Minerals

� Section 1502 of USA Dodd-Frank Act

– Columbite-tantalite,

also known as coltan

(used to produce

tantalum)

– Cassiterite (used to

produce tin)

– Wolframite (used to

produce tungsten)

– Gold


Conflict Minerals

� HAL Manufacturing Supply Chain

– >50,000 vendors

– >10,000 potentially affected inventory items

– USA SEC reporting requirements (kick in 2014)

– Independent audits required

� Significant resource demands required to comply!


Bloomberg ESG Equity Index Survey

� Good example of a tertiary data request:

– Requires review of 234 lines of data

– Results sold as product on Wall Street by Bloomberg

Equities

– No direct benefit to HAL

– Solely focuses on one attribute (i.e. stock value of the

company)

� Other investment firms/groups frequently request similar info


Customer Demands

� Questionnaires

– Information requested varies wildly

– Not always clear on how info will be used

� Data Requests

– US EPA Greenhouse Gas Subpart W

– Field-specific metrics

• Waste

• Water consumed

– Contract-specific metrics

Documents

Corporate Social Responsibility: The Company Perspective · 2013. 10. 10. · impact on Halliburton’s long-term success broadens. On behalf of all stakeholders, it is our purpose