KNPC to launch sustainability report

The list of oil and gas companies that issue corporate social responsibility (CSR), or sustainability reports, is growing. These are nonfinancial reports issued for stakeholders, potential investors, and other interested parties.

Kuwait National Petroleum Co. announced plans for a 3-year program geared to produce a CSR. KNPC’s first draft is expected to be circulated in 2009. KNPC scheduled an interim report in July 2010 and a final CSR by August 2011.

Farouk Hussain Al-Zanki, KNPC chairman and managing director, calls his company “one of the most environmentally-conscious and socially aware companies in the region and across the wider world.”

CorporateRegister.com Ltd., a London company that tracks CSR reports, lists 290 oil and gas companies worldwide. Some of these are national oil companies.

During a quick online search of CorporateRegister.com for existing CRS reports from Middle Eastern oil companies, I found Abu Dhabi Gas Industries Ltd. and Abu Dhabi National Oil Co. listed.

KNPC said it also plans “a more sophisticated web site to reflect the company’s commitment to making the priorities of people and planet as important as project.”
Recently, the Council of Arab Environmental Ministers awarded their 2008 “Cleanest Production” prize to KNPC.

Credibility of CSR reports studied

A growing number of oil companies issue Corporate Social Responsibility (CSR) reports, which sometimes are called sustainability reports. These reports provide a company's stakeholders with nonfinancial information about corporate risk mitigation on social and environmental issues.

All types of industries file CSR reports, most of which are not independently verified. CSR reports worldwide disclose a wide range of information that varies widely between companies and also between countries. Naturally, this begs the question of whether any particular report can be believed.

Of oil and gas companies that publish CSR reports, 35% have their reports externally assured for accuracy, said a new study entitled Assure View. The study used CSR report archives from CorporateRegister.com Ltd., an online directory of CSR reports.

The study was sponsored by firms that conduct these external assurances. Study sponsors are SGS, KPMG, LRQA, and The Reassurance Network.

The study notes a relatively new approach is for a company to invite various individuals or organizations to form an independent advisory board or panel. Royal Dutch Shell PLC was among the 11 companies that issued panel reports last year.