Assignment Template

IAP 2012
Name
: Intan Farhana
Students ID
: 1201103040006

Case Study Assignment (GRI Report Application Level Checked and Interpretation)
Guidelines for Case Study:
1. Choose a GRI report from any industry in your folder (softcopy) of report example or you may find them from
other source.
2. Read through entire report and be familiar with reporting structure.
3. Based on the given indicators and clauses, please fill up the table below appropriately with your comments
and evaluations.
4. Your comments and evaluations are purely your interpretations of the content of the report for all of disclosure
and performance indicators and they can be purely your thoughts on what should be the appropriate level of
visibility (applied, partially applied or NOT applied), and state your comments on the last given column in the
table.
5. Do not hesitate to contact the co- facilitator if in doubt or require some information regarding the case study
assignment.
6. Submit your assignment on 11 August 2011 at the latest to :

No.

GRI
Index

1.

1.1

Page #
(where
Stateme
nt
is seen)
1

Statement Made by Reporter Company

BG Groups Statement of Business Principles sets

out the core values and behaviours that we
believe are essential elements of sustainable
value creation.
BG Groups significant contracts include a

GRI Indicator
Applicability
(Fully Applied /
Partially Applied /
NOT Applied /
Not Applicable)
Fully Applied

Comment /
Recommendatio
ns

commitment to work in accordance with our

Business Principles. Many of our contractors
operate in accordance with their own similar
statements of operating principles.
BG Groups core business the discovery,
production and delivery to markets of natural gas
resources plays an important role in global
climate change mitigation strategies. Natural gas
combustion
produces
significantly
lower
greenhouse gas (GHG) emissions than the use of
other fossil fuels. For this reason, fuel substitution
in particular, the displacement of coal in favour
of natural gas has been identified as a key
means of reducing overall global GHG emissions.
In 2009, BG Group was included in the FTSE4Good
and the Dow Jones Sustainability Index. The Group
is also one of the five leading energy companies
found in the Goldman Sachs GS Sustain Energy
Focus List.

2.

2.2

2.10

31

3.3

31

Annually.

Fully Applied

3.12

33

GRI Index

Fully Applied

3.13

33

Pricewaterhouse Coopers assurance statement

Fully Applied

4.5

34

4.13

36

The Groups Executive Directors and Senior

Executives remuneration policy is described in the
Remuneration Report. Non-Executive Directors do
not receive performance related pay. Their fees
are set out in the Remuneration Report.
Given BG Groups global presence an exhaustive
list of memberships would be long, would not
provide meaningful value and would soon be out
of date. Organisations in which BG Group has
positions in governance bodies or high levels of
participation include:
World Business Council for Sustainable
Development (WBCSD);
International Petroleum Industry Environmental

Fully Applied

Fully Applied

Fully Applied
Fully Applied

4.14

57

10

4.16

56

11

EC2

12

EC3

Conservation
Association
(IPIECA)
International
Business
Leaders Forum (IBLF)
International Chamber of Commerce (ICC);
Extractive Industries Transparency Initiative
(EITI);
United Nations Global Compact (UNGC);
Transparency International (TI); and
Voluntary Principles on Security and Human
Rights (VPSHR).
employees and potential employees;
investors;
communities (where access is available);
governments;
civil society groups;
non-governmental organisations; and
the media.
inclusivity the participation of stakeholders in
developing and achieving an accountable and
strategic response to sustainability;
materiality the identification of those issues
that are most relevant and significant to us and
our stakeholders; and,
responsiveness the demonstration that we
have responded to stakeholder issues that are
material to us and our stakeholders through
decisions and actions
taken, our performance and communications
made.
We report on the risks and opportunities for the
company in relation to climate change. The
company considers the financial implications of
climate change, for example energy supplydemand scenarios and the costs of national or
regional initiatives to reduce greenhouse gas
emissions.
Remuneration report

Fully Applied

Fully Applied

Fully Applied

Fully Applied

13

EC8

BG Group invests in public infrastructure projects

through our social investment programme as well
as in the course of operational construction
projects. Infrastructure investments are one of
many types of social investment projects. The
Groups Social Performance Standard requires
managers to consider potential social investment
projects in the context of: stakeholders own
development priorities; the potential for linkage
between a project and BG Groups local social
performance strategies; and BG Groups own
business objectives.
Infrastructure projects supported in 2009 include:
in Kazakhstan, our Karachaganak joint venture
has
been
involved
in
the
construction,
refurbishment and restoration of schools, public
housing and nurseries in Aksai. Our share of these
investments (calculated according to our equity
stake in the venture) amounted to 1.92 million in
2009; and
the second and final phase of a two-year road
building project in Tunisia (in partnership with the
Sfax Regional Council), which upgraded 14 km of
dust roads around our Hannibal plant into tarmac
roads. One of the main aims of the project was to
improve the circulation of people and goods in
order to assist the economic development of the
region. The total cost of the project completed in
April 2009 was 812 700.

14

EC9

Society

BG Groups material energy-saving measures are

detailed as part of our greenhouse gas reduction
programme. We report on our greenhouse gas
emissions reductions in tonnes. Much of this
reduction will have been achieved through
improvements in energy efficiency. We aim to
report on this in the short term.

15

EN5

Fully Applied

Fully Applied

Partially
Applied

16

EN6

17

EN7

18

EN9

19

EN12

20

EN15

BG Groups product is itself a primary energy

source.
BG Group carries out various initiatives to reduce
its indirect energy
consumption, however, these are not material
when compared to the
savings made by the greenhouse gas reduction
programme.
Unconventional gas operations involve production
or use of large quantities of water. As BG Groups
production of coal seam and shale gas achieves
significant scale we will be reporting the water
volumes
involved.
We
report
on
water
management at our unconventional gas projects.
We are reviewing water use in other BG Group
operations. We aim to have processes in place in
the medium term to collect and report data on
any operations where water use significantly
affects a water source.
Have significant impact only in relation to the
Victoria Mayaro Forest Reserve in Trinidad, where
there is a necessary land take for project
infrastructure. The facility footprint within the
forest reserve is 21 hectares. This area is required
for the life of the field, an estimated duration of
30 years. We expect the land to be
rehabilitated following asset decommissioning in
line with Group practice. For details of BG Trinidad
and Tobagos habitat restoration and offset efforts
see EN13.
The Environmental Impact Statement (EIS) for our
QCLNG project in Australia is currently being
evaluated by the State and Commonwealth
authorities. Pending approval, we expect to report
on this in future years.
BG Group assesses impacts to endangered plant
and animal species through our Environmental
Impact
Assessment
(EIA)
process.
Where
endangered species are identified our impacts are

Not Applicable

Not Material

Not Available

Fully Applied

Not Available

managed at an operational level in accordance

with BG Groups Biodiversity Standard. The
Standard sets out Group level expectations for the
management of biodiversity. We do not collate at
Group level data on endangered species as this is
a local indicator specific to the point of risk.

21

EN16

Greenhouse gas data

Fully Applied

22

EN18

Greenhouse gas emissions reduction programme

Fully Applied

23

EN22

10

24

EN26

11

25

EN30

12

26

LA1

13

Disposal method is determined by BG Groups

Resource Use and Waste Management Standard.
Climate change
Environment
BG Group is committed to internationally
accepted
environmental
best
practice.
Environmental protection is an embedded part of
performance and not seen as a separate cost. Full
expenditure on environmental protection cannot
therefore be distinguished from project and
operational expenditure.
We report on our numbers of direct employees at
Group level and by business segment. Our direct
employees by region are
as follows:
Europe and Central Asia: 921
Africa, Middle East and Asia: 1 888
Americas and Global LNG: 1 936
BG Australia: 470
BG Advance: 616
Group Functions: 360
We do not report on contractor data as how a
contract type is defined will differ at local level
across the Group depending on legal and
regulatory requirements and local practise in the
relevant location. This does not allow for
meaningful
aggregation
and
comparisons
between locations at Group level. We do not

Fully Applied
Fully Applied

Not Available

Partially
Applied

27

LA2

14

28

LA7

15

29

LA8

15

envisage collecting or reporting on this data at

Group level in the long term.
There are a number of flexible working
arrangements available to meet employee needs.
We have a Group Flexible Working Policy and a
number of local flexible working polices where
appropriate, which are compliant with relevant
local legal and regulatory requirements. When a
flexible working request is considered the
business operations, role and location and the
employees individual circumstances are taken
into account.
Gender split is 6.7% male, 8.6% female. By age
group, turnover is as follows: <30 6%; 3050
7.3%; >50 8.1%.
Employee turnover by region is:
Europe and Central Asia: 4.4%
Africa, Middle East and Asia: 8.6%
Americas and Global LNG: 9.1%
BG Australia: 1.5%
BG Advance: 5.5%
Group functions: 7.2%
*This data excludes Gujarat Gas, Comgas and
Premier Power for which data is not available
(represents approximately 30% of worldwide
employees averaged over the year).
We report fatalities, Total Recordable Case
Frequency (TRCF) and reported occupational
illness frequency. Our sickness absence rate in
2009 was 0.73 per 100 days worked and our Lost
Time Injury Frequency (LTIF) rate per million work
hours was as follows:
Employees: 0.31
Contractors: 0.44
Total workforce: 0.40
We aim to report fully on this indicator in the short
term.
Education, training and counselling programmes
concerning serious diseases are delivered by

Fully Applied

Partially
Applied

Not Available

30

LA10

16

assets. Data on numbers of people involved is not

currently aggregated at Group level. We aim to
put in place processes to allow us to report fully
on this indicator by the medium term.
BG Group makes available a wide range of
training programmes to its employees. Across BG
Groups wholly owned subsidiaries and operated
joint ventures we conduct formal and informal
training as well as external or internally
developed programmes. Due to the large number
of training programmes it is not feasible to gather
the full information required or report it on an
average hours basis.
However, we report for 2009 sample data on core
programmes:
more than 600 people participated in BG
Groups
Core Curriculum; and
More than 2 000 employees and contractors
completed BG Group
Life Savers Module 1 on confined space entry.
In addition BG Groups online Business Principles
training module, launched in 2008, was
completed by 94% of our people targeted in the
first year.
Premier Power Limited, Gujarat Gas and Comgas
each have their own training programmes, which
are not included here. These training programmes
are customised to the nature of their businesses
and the different technical and professional
training needs. However, a number of Group
initiatives around Health, Safety and Security are
made available to these subsidiaries (for example
the Life Savers) and are also made available to
joint venture partners where BG Group does not
have a controlling interest and is not the operator.
*Targeted 4 278 people for this first round of
training.

Partially
Applied

40

HR3

19

41

HR6

20

42

HR8

21

We do not consider total number of training hours

to be a meaningful indicator; more relevant is the
percentage of employees trained. In 2008, the
first, foundational module of online training in
the Business Principles, including principles
related to human rights, was launched for all
members of the BG Group workforce and was
completed by 94% of our people targeted for the
training*. Since then, all new joiners are required
to take this training as part of their induction. A
ten-question test and an affirmation are required
to complete the training.
* Targeted 4 278 people for this first round of
training.
The risk of child, forced or compulsory labour has
been identified as a low-risk issue in BG Groups
direct workforce. There is, however, a potential for
risk within the supply chain, specifically in
pipeline excavation and laying which involves a
large number of temporary and transient workers.
BG Group is not aware of any reported human
rights incidents within its supply chain in 2009
and we are putting systems in place that will allow
us to assess more fully the risks, including those
referred to above. We will continue to report our
approach to assess risks and, where relevant,
measures taken to eliminate child and/or forced
labor.
BG Group has identified assets where training on
the Voluntary Principles on Security and Human
Rights (VPSHR) is deemed relevant to operations.
In 2009, training on the VPSHR was completed for
security managers in India, Trinidad and Tobago
and Bolivia. This extends the training provided in
2008 to security managers in Tunisia, Egypt,
Algeria, and Nigeria along with Group Security.
In 2010, BG Group will carry out further VPSHR
risk
assessments
and
update
existing
assessments. We will continue to implement
management actions in relevant operations. We

Partially
Applied

Fully Applied

Partially
Applied

42

SO3

22

43

SO6

24

aim to report fully on this indicator by the medium

term.
BG Group takes a risk-based approach to the
implementation of the VPSHR. Training for security
contractors is considered an implementation
action only where this is identified as such on the
basis of our risk assessments and will be included
it in our sustainability reporting.
Training in BG Groups anti-corruption policies and
procedures has been given across BG Group via
training-workshops and the Business Principles
online training tool. Workshops have been
conducted in 2008 and 2009 across business units
to accompany the launch in 2008 and
implementation of the Ethical Conduct Policy and
associated
standards
(including
the
Anticorruption Standard). The Business Principles
online training is for employees and contractors
and it includes coverage of BG Groups anticorruption policies and procedures. Percentage of
employees who have completed the training is
discussed in HR3. We aim to report on the
percentage of employees receiving anti-corruption
training by management and non-management in
the medium term.
The BG Group Standard on Political Donations
prohibits donations to political parties and
organisations,
politicians,
and
political
expenditure of any kind on behalf of BG Group or
any Joint Venture in which BG Group has a
controlling interest. It is important to note,
however, that wording in the UK Companies Act
2006 fails to distinguish between political
expenditure (such as expenditure on systems to
track the progress of a parliamentary debate or
on political consultancy support) and political
donations. For this reason, in common with all UKlisted businesses, BG Group is required to seek
shareholder approval for political donations at
each Annual General Meeting, even though the

Partially
Applied

Fully Applied

44

PR2

26

45

PR5

26

Group has no intention of making any form of

political donation in the usual sense of that term.
BG Group is primarily a natural gas exploration
company.
The
Groups
main
product,
hydrocarbons, is a raw material commodity. This
indicator is therefore not applicable for BG Group.
BG Group is primarily a natural gas exploration
company.
The
Groups
main
product,
hydrocarbons, is a raw material commodity. This
indicator is therefore not applicable for BG Group.

Not Applicable

Not Applicable